When evaluating rental properties or commercial investments in Calgary, lenders and investors rely on a critical metric: the debt service coverage ratio (DSCR). This calculation compares a property’s net operating income to its annual loan payments, offering insight into financial stability. For local investors, grasping this concept can mean the difference between securing favorable financing or facing...
Evaluating profitability in property investments requires practical metrics. One essential tool is the cash-on-cash return, which calculates annual income relative to the initial capital spent. The formula is straightforward: divide yearly cash flow by total cash invested. This percentage reveals how effectively your money generates income. For example, a property producing $10,000 annually from a...
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