This 46-page E-book, entitled Real Estate Investment Mathematics, by P. Sivitanides, Ph.D., presents and discusses a comprehensive collection of the mathematical formulas (see list below) that investors, analysts and real estate professionals can use to estimate several measures of one-period and multi-period real estate investment performance, as well as other critical property investment metrics, including the Internal Rate of Return (IRR) and the Modified IRR (MIRR)/Financial Management Rate of Return (FMRR). The book includes comprehensive presentation of all formulas needed (final and intermediate) with numerical examples so that the reader can have a complete understanding of how the formulas are applied.



The following FORMULAS are presented and discussed in this book with examples:

Internal Rate of Return (IRR)

The three Formulas for Modified IRR (MIRR)/Financial Management Rate of Return (FMRR)

Potential Gross Income Multiplier (PGIM)

Potential Gross Income (PGI)

Effective Gross Income Multiplier (EGIM)

Effective Gross Income (EGI)

Net Income Multiplier (NIM)

Net Operating Income (NOI)

Overall Capitalization Rate/Income Return

Capitalization Factor

Band-of-Investment Formula for Estimating a Market/Required Capitalization Rate

Theoretical-Approach Formula for Estimating a Market/Required Capitalization Rate

Appreciation Return

Total Return

Return on Total Capital (ROR)

Return on Equity (ROE)/Cash-on-Cash Return/Equity Dividend Rate

Before Tax Equity Cash Flow (BTECF)

Equity Investment

Loan Amount

Debt Service

Mortgage Constant

Payback Period

Breakeven Occupancy

After Tax Cash Flow (ATCF)

Taxable Income

One-Period IRR

Income Tax Payment in Association with Income Producing Property

Capital Gains

Formula for Cash Flow for Last Period of Analysis

Future Resale Price

Annual Rental Income of Occupied Multi-Tenant Property

Multi-Period Lease Rate Growth Formula with Intertemporally Variable CPI Forecast

Multi-period Lease Rate Growth Formula with Constant CPI Forecast

Present Value (PV)

Net Present Value (NPV)

Profitability Index

The ebook can be purchased at property-investing