How to Evaluate Your Phoenix Real Estate Investment's Performance
Channel: Service Star Realty
Date: 11/02/2019

https://leaseaz.com/blog/how-to-screen-for-the-best-tenant-for-your-phoenix-rental-property-management-tips?


Evaluating the performance of your real estate investment is always a crucial step in earning as much as you can on the property. There are a few steps you need to look at to determine if your investment is truly performing.

Review Monthly Cash Flow
The clear and obvious thing you need to look at is your monthly cash flow ( https://www.leaseaz.com/blog/cash-flow-101-key-differentiators-of-positive-and-negative-cash-flow-on-phoenix-rental-properties ). Look at your rental income versus your expenses. To add up your expenses you must include your debt services, taxes, any HOA fees, insurance, and maintenance.

Estimating maintenance

The most difficult thing to budget for is maintenance ( https://www.leaseaz.com/blog/maintenance-and-repairs-101-how-to-handle-maintenance-issues-for-your-phoenix-rental-property ). Past repairs can be used to get a general indicator of future expenses. You always need to account for the larger items like carpet and paint, which will need to be replaced every five to eight years.

Management and vacancy expenses

Management fees ( https://www.leaseaz.com/blog/what-types-of-fees-can-i-expect-when-using-a-property-management-company-in-phoenix ) are also important when you’re factoring your cash flow. If you pay a percentage of your rent, convert that into a set dollar amount. It is much easier to be translated that way. Also, do not forget to budget for vacancy. To be on the safe side, you should budget at least five percent for that.

To learn more, go to: https://www.leaseaz.com/blog/how-to-evaluate-your-phoenix-real-estate-investments-performance

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