Discounted Cash Flow Analysis for Real Estate

4 Easy Steps

Determine the Holding Period

Set the number of years between purchase and expected sale of the asset.


Estimate Cash Flow

Make a forecast of the expected cash flows from operations for each year during the holding period.


Estimate Sale Proceeds

Enter the expected sale proceeds after closing costs to be received in the final year of the holding period.


Select Discount Rate

This is the required rate of return, or the return that could be generated by an alternative investment with the same amount of risk.

Where's the Best Place to Buy Investment Property?

How does your property rank on a scale of 1 to 100? The APV United States Property Location Ranking™ shows scores for property locations on a scale of 1 to 100. The most desirable locations receive a score of 100. There are two rankings assigned for each address. The National ranking shows how the property ranks as compared to other properties throughout the United States. The State ranking shows how the location stacks up against others within the state.

What is a Cap Rate?

Cap rate is an abbreviation for capitalization rate and there are a few different ways to calculate it.

How to Find the Market Value of a Real Estate Investment

If everyone had access to perfect information, all parties would come up with the same value for a given piece of property.

How the Cap Rate Calculator Works

How the tools provided by Apartment Property Valuation work.

How to Find Cap Rates

Learn three different ways to find cap rates from our informative video.

Sell Your Home to a Real Estate Investor and Fetch a Higher Price

You'll usually make the most profit by selling to a traditional homebuyer. But this isn't always the case.

When to Use Direct Capitalization

It's not always best to use NOI over cap rate to find a property value. Let us break it down for you.