What to analyze when investing in income property?

I'm looking to start investing in the U.S. and i am wondering, with your experience, what you would recommend i put priority on when analyzing potential investments? Any quick-sheets to use or books to read or websites to visit? THANKS!
In Buying Property - Asked by John H. s. - Mar 29, 2012
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Paula G.
Portland, OR

Your question is pretty generic. What are the specific property types that you are interested in as investments?

Mar 29, 2012
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Brian D.
Belleplain, NJ

Hi John, I have several checklists and ebooks you may be interested in. you can email me at briandtn@aol.com

Apr 1, 2012
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Lender/Mortgage Broker
New York, NY

We can provide a simple analysis for you at no cost.

Apr 5, 2012
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Jeff R.
Lender/Mortgage Broker
Birmingham, MI

I wrote a comprehensive report on on understanding cash flow from an underwriters perspective on both investment properties as well as owner users Which is critical if you plan on getting financing. Underwriting "holdbacks" are one of the least understood aspects of calculating NOI and Debt Service Coverage Ratios.
Check it out. Link below. Let me know if it helps.

Apr 6, 2012
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John M.
Irvine, CA

You need to analyze everything! You should hire one of the excellent people that specialize in the type of property you want to buy. Be happy to pay them a fee as they will help you make money. I know I look at all aspects of the property before my client and I go into an investment...

Apr 8, 2012
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Nancy G.
Rochester, NY

John -let me know if you want to buy in the USA. Otherwise, you should engage possibly a CCIM designee or candidate to help you. On CCIM's website, you can also find classes which will help you understand investing. As colleagues have suggested, there is the big picture when buying. ROI, cash-flow, tax consequences...I would recommend that you immerse yourself in the type of product which you can identify with most. It is always nice to get passive income check but there are risks to investing.

Apr 10, 2012
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Ben S.
Mesa, AZ

You will also want to have your property condition assessments performed complete with reserves...

Apr 10, 2012
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Alan E.
Saint Petersburg, FL

learn how to value property based upon an income approach by understanding the following terms:CAP (capitalization rate) , NOI (net operating income), COC (cash on cash), etc, and then learn how to us them..

May 1, 2012
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Steven M.
Fort Lauderdale, FL

The first thing you have to do is decide what return you require on your investment. Then look at the area you would like the property to be located in and review average CAP rates in that area to see if any of them match your requirement. That may narrow your options as to what type of property you should be looking for. I am in South Florida, you can contact me anytime if you like the warmth and sunshine that we have down here. Good luck !

May 24, 2012
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Matthew U.
Redondo Beach, CA

It is important to know your market.
To have a strong grasp of the market look at the demographics and the sales comparables for the last 6 months. These are not always easy to obtain. An experienced agent in Commercial Income Property sales should be able to provide these comparables within a day. If the agent is not able to provide this information quickly then it is a good sign that you should be working with a more experienced agent to handle your investment.
Experience is important in income property investing. Experience is not found in the books! There are experienced agents in every major marketplace at the big firms. However, depending on how big of a purchase you are looking to make they may not service your needs. If you experience this issue, spend time poking around and try and find an assistant or junior agent at an experienced firm to assist you. The other option that is equally as good is to find a boutique agent who knows the market well and previously worked at one of the major firms. This is your investment, we are dealing with real estate, so no matter how you cut it, there are going to be a lot of eggs in one basket. It is well documented that in all types of private equity investing, in which income property investing is a sub group, that the quality of the advisor is directly proportional to the success of the investment.
Some information about the consultant who answered this question...
Degrees: BS Financial Economics with an emphasis in Accounting, University of California
MBA Finance, University of California
Alumni: Ernst & Young (Big 4 Accounting Firm)
Marcus & Millichap (National Income Property Investment Brokerage House)
Coldwell Banker Commercial (National Commercial Brokerage House)
Current: KW Commercial in La Jolla

Jun 1, 2012
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