A useful way to think about a large decision is to remove the marketing noise and return to a few simple questions. What follows is not a recipe; it is a framework for a calmer conversation.
01
Calculate total invested capital: price plus transfer taxes, registration, legal work, brokerage, furnishing and financing costs.
02
Use net operating income, not gross rent. Deduct realistic vacancy, service charges, maintenance, management, insurance and local taxes.
03
Calculate cash yield on actual equity after financing costs. Leverage improves and worsens outcomes.
04
Estimate break-even occupancy and break-even exit price. These quickly expose fragile deals.
05
Model the exit: selling costs, taxes, time on market and a lower-than-expected price.