Weekly Hot Sheet 032823

πŸ”₯ Your Weekly Hotsheet - 5 of the top investment properties on the market

πŸ”₯ YOUR WEEKLY HOT SHEET πŸ”₯

Hi ,

Here is your hot list for this week. Each week, our team analyzes all active listings and identifies some of the best buying opportunities on the market.

If you are a serious buyer and would like to explore any of these opportunities further, please click any of the links below.

Please feel free to forward this email to a friend who may be interested.

All the best,

David Robinson

Multifamily:

What you may have missed last week on The Break Free Real Estate Podcast: 

Tip of the Week: Untrended Yield on Cost (UYOC)

If you're looking to invest in real estate, there are a lot of financial metrics to consider when evaluating potential properties. One of these metrics is called the "untrended yield on cost" (UYOC), which is a way of measuring the return on your investment.

So, what exactly is UYOC?

Essentially, it's a ratio that compares the amount of net operating income (NOI) a property generates to its total acquisition cost. To calculate UYOC, you simply divide the property's annual NOI by its total cost including purchase price, closing costs, broker fees, capital improvements, etc.

UYOC = Net Operating Income / Total Acquisition Cost

For example, if a property generates $50,000 in NOI each year and costs a total of $1,000,000, the UYOC would be 5% ($50,000 divided by $1,000,000).

Why is UYOC important?

Well, it’s an easy way to quickly compare multiple investment properties at once. It also takes into account total cost of the acquisition while the Cap Rate Analysis only takes into account the value or purchase price.

However, it's worth noting that UYOC doesn't take into account factors like inflation or changes in market conditions, which can affect the long-term value of the investment.

It's just one metric to consider when evaluating a property, and should be used in conjunction with other financial metrics and qualitative factors like location, condition, and potential for future growth.

Overall, UYOC is a useful tool for real estate investors to evaluate the return on their investment. By understanding this metric and how to calculate it, you can make more informed decisions about which properties to invest in and how to maximize your returns.

Let us know how we can serve you.

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