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What are property types in Real Estate investment class?
Real Estate investment class can be subdivided into multiple property types - Residential, Commercial and Land, each with its own investment characteristics and sub-types. This Bungalow.com article provides more commentary on the topic. Residential sub-types can be single family residential, multi-family residential, etc., Commercial sub-types can be offices, retail, industrial, leisure and healthcare.What are property classes in real estate?
Property Classes are industry monikers for communicating the quality of a property; A, B, C, D are common designations for property classes. This RealWealth article digs down into specifics.What are the various strategies one can employ to maximize returns from real estate?
Given a real estate asset, there are multiple strategies to maximize returns, each of which involves a different amount of effort and a different amount of uncertainty associated with it. Common strategies are Core, Core Plus, Value Add, Development and Opportunistic, with increasing amount of risk and return potential from left to right. This Jasper article digs deeper into the subject.What are the common metrics used to evaluate real estate investments?
The common metrics used are Cap Rate, IRR, Cash on Cash, Stabilized Rent on Cost, and Equity Multiple. For high level definitions of these terms and formulae for computing them, RealtySlices Blog is useful.What is IRR? What is Cash on Cash return?
IRR stands for Internal Rate of Return. It is one of the most popular ways to compare real estate investments because it takes all the financial flows into and out from the investment.
Cash on Cash (CoC) return is simply the cash outflow divided by initial cash invested, expressed as a percentage.
For a deeper dive into understanding IRR and CoC returns, review this article from Motley Fool and this article from Smart Asset