A sound analysis includes total capital, vacancy, fixed costs and financing. The process below helps create a clear record that can be reviewed and compared later.
Record observable facts, dates and sources for figures. Do not replace evidence with an assessment of responsibility.
Step-by-step process
1. Count all invested capital
Add acquisition costs, renovation, furniture and other setup expenditure to the purchase price.
2. Estimate income realistically
Include vacancy, discounts, non-payment and preparation periods rather than multiplying the best month by twelve.
3. Separate gross from net
Gross yield ignores running costs. Net return should subtract operating costs and finance.
4. Test scenarios
Compare base, cautious and stress cases. The result’s sensitivity to assumptions matters more than one headline percentage.
What to check before finishing
- Every figure has a unit, period or source.
- Photos and notes can be matched to a specific location.
- Both parties retain the same file or printout.
- Disputed or uncertain items are marked rather than hidden.
Practical example
Instead of one vague note saying “property in good condition”, the record contains the room, exact item, observation, date, photo and—where money is involved—a separate calculated entry. Months later, the parties do not need to reconstruct events from memory.
This is organisational and educational material. It is not individual legal, tax, financial or technical advice.