Annual rent is not the same as net profit. Separate total acquisition cost, rental income, vacancy and operating expenses.
An explicitly hypothetical example
Assume IQD 200 million purchase price and 10 million acquisition and preparation costs: 210 million total. Assume 12 million annual rent, 1 million lost to vacancy and 2 million operating costs. That leaves 9 million before other case-specific costs. Net yield is 9 / 210 × 100, about 4.29%. These are teaching assumptions, not Baghdad market averages or a Mulk offer.
Stress-test the assumptions
Recalculate with lower rent, longer vacancy and higher repairs. Consider whether you can hold the property without income. This simplified example excludes borrowing and changes in resale value.
Ask what supports the estimate
Distinguish actual leases from expectations. Record the condition, services and expenses, and update your estimate after inspection. No yield applies reliably to every property.
Your next step
Compare available Mulk listings and request contact to coordinate a viewing and gather property-specific information. Replace the illustrative figures with verified assumptions before committing.
From rent to net cash flow
IQD million / yearHypothetical teaching example, IQD millions/year; not market prices or guaranteed returns.
Illustrative example, not verified market data or a guaranteed return.
Chart data
| Label | IQD million / year |
|---|---|
| Gross rent | 12 |
| Vacancy loss | 1 |
| Operating costs | 2 |
| Net cash flow | 9 |
