Rental apartment modelling
I literally have no work-experience from RE but it's been a dream of mine since I was a kid. After stacking some annual bonuses I feel its time to get into the RE market. I'm completely against investing in something I don't understand and haven't made calculations on, so I'm trying to model whether or not a rental apartment is worth the investment and has come across a couple of question marks I hope you guys could help me with:
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Is there any point of discounting the NOI? I mean why would I? I'm not valuation the actual apartment since it already has a price I've bought it for and all future cash flows are probably being used to amortize on the loan.
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My investment horizon is 3-5 years - what is a reasonable MM (money multiple) - I'm going for atleast 2.0x (same as for PE investments)
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Do you guys make any assumptions that is good to know of?
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Do you include tax deductibles in your estimations? I mean you could? And it would give better and more correct figures
I appreciate the answers!!
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