We’re ending this awesome week with a really interesting way to be more efficient when it comes to Edmonton real estate investing.
Note: Remember, you can access all our available Investment Homes For Sale in Edmonton through our Edmonton MLS Listings page.
The “secret sauce” in getting the best real estate deals in Edmonton is the formula called Gross Rent Multiplier or GRM. This equates the ratio of the value of the property to its income generated.
Fancy words, yes, but this terrific formula will help you immediately determine if an Edmonton real estate is worth purchasing or rejecting. Time is gold and there’s a shipload of investment properties listed on the Edmonton MLS and as an investor, it’s not worth your time to comb into all of those listings.
Here’s a great quote that puts the GRM use into perspective.
And the magic formula is this:
Always remember, the value for this formula is dynamic due to the fact that rental profit and Edmonton house values fluctuate. GRM is a very powerful tool in Edmonton real estate investing but unfortunately, most Edmonton investors doesn’t is too pre-occupied to go through all the computation.
Here’s how you will know the GRM for your neighborhood.
Determine the average annual yields for the rental properties in your chosen neighborhood, then verify the actual home values of those properties. Best way to do this is to coordinate with your Edmonton real estate specialists—Team Leading Edge is here for you on this one.
The lower the value, the better. 10 below is ideal.
Try it now and reap the profits in the near future.
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