Real estate investments generally require some number crunching to assess their profitability. To succeed, investors must understand four calculations, beginning with the capitalization rate, which measures the actual value of a property. Gross operating and gross potential income are used to calculate profits based on total vacancy and occupancy rates, respectively. Net operating income takes the actual costs of property management into account and can provide additional information in making a purchasing decision.****Read more: Important Calculations for Real Estate Investments | eHow.com http://www.ehow.com/info_12193248_important-calculations-real-estate-investments.html#ixzz1oHvKhtUU
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