7

This is different, but related to this other question:

Questions about Real Estate that aren't about Personal Finance or Money

Basically, there are various measures used to evaluate real estate investments, such as capitalization rates, cash on cash return, debt coverage ratio, gross rent multiplier, the time value of money etc...

Are questions relating to the use of these measure to evaluate real estate investments on topic for this site? If not, is there another site where they would be appropriate?

7

I think it's important to realize that real estate rental, or "flipping" for that matter, is a matter of operating a business rather than of investing in the same sense as stocks and bonds.

But subject to that distinction, understanding the terms and concerns doesn't strike me as significantly different from understanding the corresponding investment issues.

So if it's personal-sized transactions, I'd call it on topic. And in fact we've had a fair amount of past discussion of what to watch (out) for, usually correcting someone's misunderstandings.

If you're asking about multi-megabuck commercial deals, that would probably be out of scope. But many of the concepts should be similar.

Caveat: I'm just another user; if the admins feel otherwise after discussion I'll defer to their judgement.

  • I'm talking about small time personal real estate investing. Like buying a small commercial property ( a single store, office ) and renting it out. Oh, and greetings from a Jerusalem programmer :-) – Robert S. Barnes Apr 17 '16 at 16:34
  • In my opinion, you got it right. And good job describing the line from personal finance to business. – JoeTaxpayer Apr 18 '16 at 22:42

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