Is there a handy guide to evaulate rental real estate value?
Answer Louis, Well, I wouldn’t necessarily call it a handy guide, but the “formula” to determine a rental’s viability is called the Comparative Investment Analysis form. It’s in my book, No Nonsense Finance, McGraw Hill. You should have a financial calculator to do it properly. It takes into account taxes, depreciation, inflation and more. You’ll have to do some homework on the area to determine the increase in value, etc., but if you do it right, it can compare the rental to other investments as well.
