How to measure the real estate profitability of your investment?

Real estate profitability refers to the expected return that an investor can obtain from a property.

The first step to calculate the gross profitability is to establish the annual income that is expected to be received from the rental of the property.

The next step is to know the total purchase price of the property.

Once we have these two data we can apply the formula to calculate the gross profitability.

Gross profitability = (annual income / purchase price) x 100

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