Investing in real estate is exciting—but without proper financial modeling, even the best opportunities can turn risky.
Here’s a framework I follow to evaluate any property project:
Start with Key Inputs
Track costs like land acquisition, construction/renovation, taxes, and financing.
Project Cash Flows Clearly
Include inflows (rent, sales) and outflows (maintenance, insurance, vacancies).
Calculate Metrics That Matter
NPV (Net Present Value) for understanding real returns
IRR (Internal Rate of Return) to compare projects
Payback Period for assessing timeline risk
Run Scenario & Sensitivity Tests
Small changes in interest rates or construction costs can drastically affect returns. Running “what-if” scenarios is key.
💡 Pro Tip: For faster, error-free modeling, I rely on tools like Feasibility.Pro, which automate calculations, allow scenario testing, and help visualize project risks.
Document Assumptions
Transparency ensures that your decisions are based on solid analysis, not guesswork.
Whether you’re evaluating a single rental property or a multi-unit development, a structured feasibility approach reduces risk, saves time, and gives you confidence in your investment decisions.
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