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Multifamily Landlords

Is there a rule of thumb for mutli-family ownership and profit potential? Redbrick Partners, the leading managers of investment funds comprised of single-family houses say that there is a quick look rule for residential rental property.

It is not a hard and fast rule, but for an Investor still relatively new to the business trying to figure out whether there is money to be made on a residential rental property, single unit or multi family, there is an easy way to start the analysis

According to the Redbrick Rule, half the potential collectible rents don't reach the bottom line. They are eaten up by vacancies, taxes, maintenance, and unexpected expenses, such as roof repairs, system repairs or the like. So an easy formula that at a glace can shed a little light to profitability of a small investment property is: Rent divided by two divided by price



December 14, 2005


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2006: What will happen?

The housing market is cooling in many sectors, but not in towns like of Madison, Guilford, Branford, Clinton Essex and everywhere in between. In the commercial market, soothsayers predict another 18 months of moving and shaking. The investment and retail markets will continue to run white hot. Interest still runs high in owning a piece of the growing New Haven County market, especially by national big box retailers who have saturated the first tier markets and are moving into secondary markets in droves, Target, Starbucks, Panera have all made New Haven County their home or future home in 2005. Buildings for business will continue to be scarce. CFO's and the like should continue, or begin, to consult with knowledgeable Real Estate Broker Professionals in conjunction with their accountants to learn how lease payments, fit up costs and the like, can increase the bottom line of their business.

December 26, 2005


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