Let’s break down the basics of rental property investing and, most importantly, how to calculate the return on investment (ROI) for a property. Types Of Properties To Invest In ...

When investing in real estate, your return on investment (ROI) is equal to the property's cash flow, which is its income minus expenses, as well as the equity that builds up.

Conduct Investment Property Analysis. ... An online ROI calculator tool is commonly used to perform these calculations and has created a significant impact on the landscape of real estate investing.

However, not every property yields a profit for the investor. Before you enter into a purchase agreement, calculate the value of the property so you can make a wise investment.

While buying a single residential property such as a unit or house remains the most popular way of getting into the market, experts say there are other options for would-be investors.