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….
All Real Estate Investing Articles
20 Types of Tenant Scams Every Landlord Needs to Know
A number of tenant scams happen regularly, victimizing landlords who do not have effective procedures in place for screening renters, collecting rents, and writing the right contract. These scams can pose a great risk to the business. We spoke with the experts who shared the different types of tenant scams every landlord should know and…
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…
Top 24 Benefits of Investing in Real Estate from the Pros
When done correctly, real estate is one of the most popular and profitable investments with a lot of potential for success. Real estate investing offers many advantages, and investors can enjoy a steady income flow that may lead to financial freedom. We spoke with the industry experts who shared the various benefits of investing in…
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…
Top 25 Expert Tips on How to Get Clients in Real Estate
Clients are the lifeblood of a real estate business. It’s important to generate enough leads and build your sphere of influence to ensure success. We spoke with experts who shared their best tips on how to get clients in real estate that involve everything from making better uses of open houses to finding new clients…
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…
