An incorrect calculation can result in a constant headache – for example, a frequent search for new tenants, as well as reduce profits and even lead to losses.
For example, to attract the attention of investors, many companies advertise high profits: 15% net per year and higher. However, they show gross, not net profit, or simply numbers that cannot be verified.
Another mistake: an inexperienced investor, when calculating profitability, does not include the costs of maintaining the property or does not consider it necessary to do so. The result is that you will either receive a much smaller profit due to “unforeseen expenses”, or will not be able to find really good and reliable tenants for your property, which will add to your problems later.
If you are currently in a problematic situation due to investment errors, the first thing you need to do is understand whether your expectations are realistic. Maybe you want something unattainable from your investments? A professional assessment will help you find out whether it is realistic to increase the return on your investment and by how much.