You probably know the rate of return for your stocks, bonds, or other investments. But do you know the rate of return for your rental properties?

An asset performance test measures the CAP rate, a metric investors use to measure how well an investment property is performing. This tool has many applications and provides insights to help you make educated decisions.

An Asset Performance Test can provide valuable insights to help you make an educated decision.

If maximizing your investment is important, holding onto a high-performing asset makes sense. On the other hand, keeping a low-performing asset may not be the best choice—unless your goal is philanthropy. But how can you tell if your property is underperforming or overperforming? An Asset Performance Test will measure your property’s rate of return and give you the clarity you need.
 
Many people think their property is doing great until we measure it. Most people are shocked to find out their rental properties are giving a 1% or 2% return. Once they see the numbers, many want to sell their underperforming property and buy a higher-performing property.

Before purchasing an investment property, it’s essential to know the expected rate of return. Running an Asset Performance Test on every property can give you the information to make a smart decision.

By evaluating factors like market rent, purchase price, property taxes, insurance, property management fees (if applicable), HOA/maintenance fees, and other expenses, you can determine how well a property is likely to perform. This allows you to make an informed and educated choice so you can select the right investment property.