Date: December 2013: Picture

I split the graphic up into two pieces for easier rendering.  

Big Money Tip for DIYs - Bloomberg has a good graphic on Blackstone's model for acquiring a yield in real estate. I have added a couple of notes to the graphic (in yellow) as a reminder to the DIY crowd working on building their real estate portfolios that the expense side includes the labour cost of management as well as a 10% vacancy allowance. If I have done the math correctly, that puts the expense side of the income statement including vacancy allowance (but excluding debt service) at around 58% of gross rents. More at www.chpc.biz