According to the Real Wealth Network, the definition of a pro forma is a method of calculating financial results in order to emphasize either current or projected figures. A property's pro forma in real estate are its cash flow projections. So to make things simple, when you are looking to invest in real estate, a pro forma is essentially an income and expense sheet.
Read MoreEveryone should be able to have access to quality housing without having to pay an arm and a leg for it. This is a problem all across the country and it makes living very difficult for the average person. In Williamsport, we experienced this a number of years ago when the gas industry came to town. A lot of landlords raised their rents because they knew the gas guys would pay it.
When determining an asking price we take into consideration the neighborhood, the renovation done, and the type of person who would likely be moving in. I also like to put myself in their shoes and ask myself what I would pay for this apartment.
Read MoreBeing a landlord to me is more than just another income- you are providing someone a place to call home. It can be difficult trying to be fair and reasonable, yet run a business. Essentially though, owning and renting real estate is a business- so it should be treated as such. We have all seen slum lords who do the absolute minimum and collect their check every month. Or you have landlords at the opposite end of the spectrum that just get taken advantage of. So how do you land somewhere in the middle?
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