As readers of our blog should know DoorInvestor is a big fan of Rich Dad, Poor Dad. We recently came across an email article from Robert Kiyosaki, and it is so good that we would like to share with our readers. The subject of that email was “Pros and Cons of Real Estate Investing…” But…
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15 vs. 30 year Mortgage
There are many different discussions on the Internet, all coming from different angles, about whether it makes more sense to get a 15-year or 30-year Fixed Rate mortgage. We certainly would like to contribute our thoughts into this topic, but more from a real estate investment perspective. 15-Year Mortgage What are the pros and cons…
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Thanksgiving and Tradition
We often blog about real estate and there is no doubt real estate investing is our focus at DoorInvestor. Though, as we are approaching Thanksgiving (which is tomorrow), such traditional holiday made us think about the traditional methods of investing – and to us the most traditional way of investing is stocks. Just like what…
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The BRRRR Strategy
BRRRR (pronounced “burr”) is a strategy coined by Brandon Turner at BiggerPockets and it is one of the most popular real estate investment strategies due to its popularity and ease of deployment. The benefit of doing BRRRR is that you will not need to have a lot of initial capital to get started. To make…
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Expense Ratio
When evaluating if a deal is worth proceeding or not, it is important to calculate its Expense Ratio. Ideally, if the current property owner or property manager maintains good records, it is very easy to obtain last 12 months (T-12) records so we have some solids numbers to work with. There are 2 types of…
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CoC ROI – Cash on Cash Return on Investment
When I first came up with the idea of blogging around CoC ROI, or Cash on Cash Return on Investment, I was more thinking from a traditional, document what this means kind of angle. But recently, I read an article which tries to disrupt the traditional thinking and I would like to make an attempt…
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Gross Rent Multiplier (GRM)
Gross Rent Multiplier, or GRM, is one of the traditional measurements for real estate investors to evaluate any given opportunity. It is so common that this number is one of the first numbers that almost all real estate agents would provide to their prospective investors. Let’s look at the formula GRM = Sales Price /…
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The Two Percent (2%) Rule
We have blogged about the 1% rule earlier with the post here. The 2% rule is an extension to the 1% rule, and the intention of the 2% rule is to allow real estate investor to quickly determine if the deal is a potentially good cash flow deal or not. As always, we will first…
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The One Percent (1%) Rule
The 1% Rule is a handy formula for real estate investor to evaluate the potential profitability of any given deal, without pulling out a calculator or going through a complex financial model. Let’s take a look at the formula itself: Monthly Income / Purchase Price * 100 Here is an example: For an investment property…
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DSCR – Debt Service Coverage Ratio
Even though the title of this blog post is DSCR (Debt Service Coverage Ratio), we will use this opportunity to explain both DSCR and DTI (Debt To Income Ratio), as they are both important concepts around debt financing calculations. First, let’s check out the formula for DSCR: DSCR = NOI / Total Debt Service We…