Flood insurance covers property damage specifically caused by flooding. A mortgage lender typically requires flood insurance for a property located in a region that has been designated as a flood zone by the Federal Emergency Management Agency (FEMA). Flood insurance policies are obtained through private insurance providers and typically cost $700 per year or higher….
About the Author
Allison Bethell
Allison Bethell specializes in Real Estate Investment. Allison has fixed and flipped over 100 properties, including residential and commercial properties. She is a licensed real estate broker in Florida. She graduated from Villanova University with a B.A. in Business and Sociology. When Allison isn’t involved in real estate or writing, she loves to travel and has been to all 7 continents. She resides in the Miami Beach area with her husband and dog.
Free Net Operating Income (NOI) Calculator
How to Read Your NOI Calculator Results The rules of thumb for net operating income are typically: NOI should be positive on an income-producing property. NOI is typically calculated on a yearly basis. NOI does not include your monthly mortgage payments. NOI is typically used to figure out cap rate, ROI, and cash flow to…
5 Ways to Invest in Real Estate with Tips from the Pros
The five most common ways to invest in real estate are flipping houses, buying rentals, vacation properties, commercial real estate, and real estate investment trusts (REITs). Regardless of your real estate investment strategy, we recommend joining a real estate investment group or working with a mentor when you’re learning how to start investing in real…
Adjustable Rate Mortgage: ARM Rates, Types & More
An adjustable rate mortgage (ARM), or variable rate mortgage, is a home loan that has a periodically changing interest rate. Typically, the initial rate on an adjustable rate mortgage is lower than on fixed rate mortgages, averaging 4.38 percent. That rate can climb during the loan term, making ARM loans more unpredictable and riskier over…
Free Cap Rate Calculator for Real Estate Investors
A cap rate is a rate that helps real estate investors evaluate an investment property. Our free cap rate calculator generates a property’s net operating income and cap rate based on inputs including property value, gross income and operating expenses. Investors can then decide whether the property is a good value. Capitalization Rate Calculator Rule…
Rental Property Calculator: Rent, ROI, & Cash Flow
A rental property calculator helps a property owner determine the return on investment, cap rate, and cash flow on a rental property. Inputs you’ll need include property value, monthly income, property expenses, and vacancy rate. Investors typically use a rental income calculator to evaluate a potential rental property and decide if it’s a good investment…
Buy-and-Hold Real Estate Investing: The Ultimate Guide
Buy-and-hold real estate investing is the purchase of rental property with the intention of holding it for a long period. It is the most common real estate investing strategy, with investors expecting to receive monthly rental income and future appreciation. A good return on investment (ROI) on buy-and-hold real estate is 9 percent or more…
Closing Costs: Definition, Types & Average Amounts
Closing costs are the extra expenses that buyers and sellers pay on top of the purchase price at settlement of a real estate transaction. Closing costs include mortgage origination fees, discount points, appraisal fees, and more. Average closing costs on the median home sales price of $230,000 are 2 percent to 5 percent, or $4,600…
Net Operating Income (NOI) for Real Estate Investors: How to Calculate & NOI Formula
Net Operating (NOI) is a calculation of the income generated by a real estate investment. It measures the amount of cash flow generated by an investment property after operating expenses, but before principal and interest payments, capital expenditures, depreciation, and amortization. Investors use NOI to determine the value and profitability of an income-producing property. What…
Carrying Costs on Real Estate Investments – 2018
Real estate carrying costs are the costs an owner must pay on an investment property during the time he or she owns it. The most common carrying costs are paid monthly and include utilities, mortgage payments, taxes, property insurance and more. These carrying costs apply to both fix-and-flip investors and buy-and-hold investors. What Are Carrying…
Balloon Mortgages: Rates, Payment, & More
A balloon mortgage is a loan in which a large portion of the principal is repaid in one payment at the end of the term. Investors use a balloon mortgage to qualify for a higher loan amount, lower rates and lower monthly payments. Balloon mortgage rates typically start around 4.5 percent with 5- to 7-year terms….
Fix and Flip Loans: The 6 Best Fix and Flip Financing Options
Fix and flip loans are used by short-term real estate investors to purchase and renovate a property before flipping it for a profit. This type of financing for flipping houses offers investors fast closings for properties in any condition. The most popular type of fix and flip loans are hard money loans. LendingHome offers fix…
