Real Estate Deal Analysis & Advice

6 Metrics You Must Know to Identify Great Investments

Expertise:
3 Articles Written
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Billionaire Andrew Carnegie famously said that 90 percent of millionaires got their wealth by investing in real estate.

While this is true historically, we seem to have reached a level of interest and participation in real estate investing that we’ve never seen before. The result is an overabundance of new investors forging ahead without following proper due diligence.

You can’t turn on the TV without finding a half-dozen shows on house flipping, rehabs, and income properties. You can’t go down many blocks in any city without seeing cranes and construction everywhere.

A big part of the demand is a strong economy and the persistently low mortgage interest rates that have been in place for 10 years now.

Access to investment options is also at an all-time high, so you may have already jumped in or are close to it.

But before doing so, I’m going to break down the metrics you need to know and use to differentiate a risky or OK deal with a GREAT one.

Our main investing strategy is of the buy and hold variety, so that’s what I am going to focus on.

A Word of Caution

Let’s talk about specifics on what to look at when evaluating return projections.

First, I never recommend doing what I call paper-napkin analysis or creating a spreadsheet on your own. While this can work for a sniff test on a property, it will not give you information you need to truly understand the short- and long-term potential and risk.

We use tools to analyze deals, which in many cases are spreadsheet-based, but they entail very complicated formulas that evaluate a deal against each and every metric we are about to dive into.

A good tool to start with is the BiggerPockets Rental Property Calculator.

Before jumping in, know that some metrics can be taken alone to pre-screen a property but should be evaluated in combination during your analysis. This process is called underwriting. Also, note that each metric is intended to evaluate income, equity appreciation, or a combination of both.

Again, USE TOOLS!

Close up view of bookkeeper or financial inspector hands making report, calculating or checking balance. Home finances, investment, economy, saving money or insurance concept

Case Study

We will base the examples we use on the following property. Keep in mind, this is for easier math, so please don’t get too hung up on what is and is not included—like closing costs, ratio best practices, etc.

  • 5-unit apartment building: Acquired for $600,000
  • Capital invested: $150,000 (25%) 
  • Rents: $1,250 per unit = $6,250/mo. or $75,000/yr.
  • Taxes: $5,000/yr.
  • Insurance: $2,500/yr.
  • All other expenses (utilities, vacancy loss, management, maintenance, etc.): $1,625 /mo.
  • Mortgage (debt service): $2,500/mo.
  • Total gross rents: $75,000
  • Total expenses: $27,000
  • Net operating income: $48,000
  • Debt service: $30,000
  • Cash flow: $18,000

OK, let’s jump into the six metrics you need to know to identify great deals!

1. Cash Flow

Cash Flow: Net Operating Income – Capital Expenses – Debt Service

Example: $48,000 – $5,000 – $30,000 = $13,000/yr. or $1,083/mo.

Cash flow, which is an income metric, is the difference between the gross rental income and rental property expenses, including capital expenses (big ticket improvements) and debt service (mortgage).

In the example above, we had a $5,000 improvement during the year. This could have been a roof, HVAC, etc.

The cash flow projection of a real estate investment is called pro forma cash flow. An owner with solid records and who is transparent will provide you with a trailing 12 months of income and expenses (T12), but this is not common to get with smaller properties. This projection allows you to evaluate the overall cash flow of a property for a defined period in the future.

Cash flow is probably the easiest concept to grasp but can be one of the most difficult to determine. The reason is that cash flow includes many variables that can and will change, depending on who owns or manages the property—not to mention market changes in rents.

For example, if the current owner/manager does little in the way of preventative maintenance—like regularly servicing HVAC systems or a roof—then they could have positive cash flow in one year and then little to nothing the following year, when the system breaks down and needs to be replaced and the roof needs to be replaced.

Financing terms and mortgage amount is another big one, which will most certainly be different from one owner to the next.

I often hear investors target a cash flow amount that is way too low to be supported long-term. For example, if you have a property that cash flows $100 a month under normal conditions, a broken water heater can wipe out 10 months of rent overnight! (The only exception to this rule if you are buying for equity appreciation or long-term potential.)

Our example property has a stable cash flow of $1,500 a month or $300 per unit.

Tip: Target minimum cash flow of $250 a month per unit.

2. Cap Rate

Capitalization Rate (property): Net Operating Income / Current Market Value

Example: $48,000 / $600,000 = .08 or 8%

The capitalization rate (also known as cap rate), another income metric, is used to indicate the rate of return that is expected to be generated on a real estate investment property.

First, before the cap rate gurus attack, know that there are two aspects of a cap rate. There is the market cap rate, which is based on the current prevailing market rates for similar assets and asset types.

Related: How to Calculate Cap Rate (& Where Many People Get It Wrong)

And there is the property cap rate, which is what the performance is or expected to be of a given property. The metric we are discussing here is the property cap rate.

There is a pro forma cap rate, which is projected (by a broker for a listed property and by you during your analysis) and then the actual cap rate that the property is performing at, which can only be evaluated with actual data over a period of time.

Although you should use it regardless of the size of a property, know that it is less indicative of the actual market value of a property in buildings with four or less units.

The reason for this is that lenders consider such properties residential—as opposed to commercial—and base value primarily on sale comparables.

The property cap rate is calculated by dividing a property’s net operating income by sale or list price, acquisition price, or the current market value. You can also estimate the market value of a property by calculating the NOI against a market cap rate.

For example: $48,000 / .08 (8%) = $600,000

This ratio, expressed as a percentage, is an estimation for the potential return on an investment, but it is only useful to compare to the market and similar properties.

You always want to buy at a higher cap rate and hope to sell at a lower cap rate.

Using our example, the property was bought at an 8 cap. If three years from now nothing changes except for the market cap rate (which drops to 7 percent because of demand), then our property is now worth $48,000 / .07 = $685,714.

Again, this is for easier math. Your NOI will not likely be the same in three years.

Tip: Buy at target cap rates of 7+ (based on your pro forma analysis).

3. Cash on Cash (COC) Return

Cash on Cash Return: NOI / Total Cash Investment

Example: $18,000 / $150,000 = .12 or 12% 

Cash-on-cash return, another income metric, is the ratio of annual before-tax cash flow to the total amount of cash invested, expressed as a percentage.

Cash-on-cash return is one of the most popular real estate metrics. Because we are financing the property, you might also see it referred to as levered COC return. The mortgage is the leverage.

Cash-on-cash return is an indication of whether or not financing a cash investment is a good idea. In other words, cash-on-cash return computes the rate of return on an investment property on the basis of the cash invested in it.

Tip: Buy at target COC rate of 8 percent-plus.

4. Total Return

ROI: Total NOI (over time) + Equity / Amount Invested

Example: $144,000 – $90,000 + $54,000 / $150,000 = .72 or 72% (24%/yr.)

Assumptions: 3-year hold, appreciation rate of $18K per year

Total return is the actual rate of return of an investment over a given evaluation period, which includes income and appreciation. This is an income and equity metric.

First, calculate the total NOI over the hold period and then add in the equity upon sale. You will have repaid the mortgage at this point, so the debt service is already factored in.

Related: The Top 8 Real Estate Calculations Every Investor Should Memorize

Divide the total net income and equity by the total investment to get the total return on investment. Keep in mind that you will obviously be projecting the equity upon sale, but it will consider principal reduction of the loan, plus the property appreciation based on the market and cap rate upon sale.

Tip: Buy at target ROI of 20 percent-plus.

5. Internal Rate of Return (IRR)

IRR: Use a calculator!

Example: Year 1 outlays = $150,000

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Year 1 NOI: $13,000 ($5K for the HVAC)

Year 2: NOI = $18,000

Year 3: (Sold for $654,000 – $430,000 loan) $242,000 ($18,000 + $224,000 profit) 

Combined with a sound cap rate analysis, IRR is a key metric used by investment firms to project the return of an investment. This also includes income and equity.

The equation to calculate IRR is best left to a calculator. Know that it is used to evaluate the profitability of an investment over its lifetime and is represented as the average annual return percentage. Also, know that it’s a metric that is most often used by syndication firms to convey to investors the projected return on a property after a specific hold period, generally five to seven years. 

Internal rate of return uses the time value of money (TVM) to determine an investment’s performance. TVM says that a dollar today is worth more than the same dollar in the future, due to its earning capacity.

When evaluating the projected IRR of an investment, focus on the discount rate being used. It should represent the projected cap rate at the time of sale.

Suppose an investment is being marketed with a projected stabilized IRR of 20 percent using a 6 percent discount rate. If the market cap rate is 7 percent, then the projected IRR is going to be artificially inflated based on that single percentage difference.

IRR will change year over year with normal fluctuations of income and expenses.

Tip: Buy at target IRR of 15 percent-plus.

close up view of upper level windows and roofs on four row homes

6. Equity Multiple (EM)

Equity Multiple: Total Cash Distributions / Total Equity Invested

Example: (Total cash flows from IRR calc) $273,000 / $150,000 = 1.82 

Another popular real estate investing metric is equity multiple. The EM is a ratio used to help understand total cash return over the life of an investment. This is also an income and equity metric.

The EM differs from the IRR in that it does not take into account the length of the investment period or the time value of money.

Because it does not factor in discount to present value and does not take risks or other variables into account, EM should not be looked at in isolation. Paired with IRR however, you have a powerful combination of metrics.

The EM is a static factor, meaning it will not deviate year to year based on income or expense fluctuations.

Tip: Buy at target EM 1.5-plus.

Conclusion

While it may seem intimidating and confusing to analyze a property in so many ways, know that ultimately it comes down to your goals and objectives as an investor. From there, it’s a matter of identifying the metrics that give you the confidence you need to make buy or sell decisions. 

The biggest key to becoming good at analysis is like anything else: Practice, practice, practice!

An easy way to do this is to search for properties for sale (try LoopNet.com), determine market rents for the area (use Rentometer.com), and then use the numbers you know and research the ones you don’t to fill in the blanks.

Accuracy and good estimates on unknown numbers is also important, so pay attention here, as well.

What you will discover is that the difference between a risky and great investment is the number of metrics that all tend to fall in line with the tips above.

If you find a property that will cash flow at a solid number, then the cap rate and total return projections should also be good.

As always, we love sharing the path to financial freedom, so if you enjoy these articles let me know by sharing to your favorite social network.

I’d love to hear your preferred metrics and analysis process. 

Comment below!

Sergio is a real estate investor specializing in syndication investing for beginner to advanced investors. Although he has primarily invested in the greater Philadelphia market, he is expanding int...
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    Nick Peters Specialist
    Replied about 2 months ago
    Great article! Do not limit yourself to oversimple financial ratios (Cap rate, Cash on Cash). They are great but they won't tell you the whole story. Although less straightforward to calculate, other ratios, such as IRR, are indeed invaluable for real estate investors. And let's not forget MIRR, which offers some advantages over IRR. Ultimately, in Real Estate, money is made when you buy not when you sell so do the math before you close the deal. That's why having the right spreadsheet / software is key! I've been using the one described in my profile for quite some time and it helped me tremendously over the years to distinguish good deals from bad ones. And I think everybody should have access to such fundamental information!
    Sergio Altomare Rental Property Investor from Greater Philadelphia
    Replied about 2 months ago
    Thanks for the feedback Nick!
    Christopher Smith Investor from brentwood, california
    Replied about 2 months ago
    Timely article. I can't begin to tell you how many times I've read a post that boasts about landing a property only to find out it's generaring negative cash flow. The bigger the loss all the better since ostensibly it will reduce their current tax liability (whether this turns out to be the actual case or not). For me, all of my properties easily cash flow, all are significantly profitable AFTER depreciation and all have appreciated, some massively. So I'm more than happy to pay a little tax. It's the economics that count, not getting a 35 cent tax benefit that costs you a dollar. Reminds me of the old saying, "I lose a little on each sale, but I make up for it on volume."
    Sergio Altomare Rental Property Investor from Greater Philadelphia
    Replied about 2 months ago
    Thanks Chris. It's scary how many are jumping in and buying property without due diligence. I commend them for taking action, but in many cases they will be paying for the education in losses, as opposed to using patience and learning first. Good luck to you!
    Christopher Stacy Rental Property Investor from Wiesbaden Germany
    Replied about 2 months ago
    Excellent article Sergio. I love that you have included, probably the most important metrics in one article so we don't have to fish around for a holistic view. Thanks!
    Sergio Altomare Rental Property Investor from Greater Philadelphia
    Replied about 2 months ago
    Thanks Chris. Of course there are many others out there, but these right and you'll be in good shape with a great investment ;-)
    Sergio Altomare Rental Property Investor from Greater Philadelphia
    Replied about 2 months ago
    Edit: Somehow Operating Expenses were left out of the Cash Flow equation. It's mentioned, in the section, so be sure to include it in your notes.
    Kris Patel Investor from Arroyo Grande, California
    Replied about 2 months ago
    Criteria for. Retiree and NNN Property will be a little different. Low COC for peace of mind. Thanks
    Sergio Altomare Rental Property Investor from Greater Philadelphia
    Replied about 2 months ago
    Thanks Kris. That's a great point. Returns vs risk have to be factored in and will be commensurate with objectives. The above tips are for growth.
    Munqith Alhajjaj from San Diego
    Replied about 2 months ago
    Love you point of view, one said question is that Brandon Turner brother in the title 😊
    Sergio Altomare Rental Property Investor from Greater Philadelphia
    Replied about 2 months ago
    Ha. Thanks. Could be ;-)
    Damian Smith Developer from Marlton, NJ
    Replied about 2 months ago
    Hey Nick Do you mind sharing that software?
    Paul Wiseman from Saint Louis, Missouri
    Replied about 2 months ago
    Hi Sergio, thanks for your extensive effort to help, but I started to read the article and already got stumped at #1. There seems to be a discrepancy so I got frustrated and lost my interest to continue. Re: Cash Flow: Net Operating Income – Capital Expenses – Debt Service Example: $48,000 – $5,000 – $30,000 = $13,000/yr. or $1,083/mo. Cash flow, which is an income metric, is the difference between the "gross rental income" and rental property expenses, including capital expenses (big ticket improvements) and debt service (mortgage). So, which is it, Net Operating Income or Gross Rental Income?
    Sergio Altomare Rental Property Investor from Greater Philadelphia
    Replied about 2 months ago
    Hi Paul. The formula defined starts at NOI, which is gross income-operating expenses, so the description just breaks it down. Sorry for the confusion. Hope this helps
    Beth Rosenblum Investor from Monterey, CA
    Replied about 2 months ago
    Thank you very much, Sergio! With a small amount of cash for my initial purchase (around $35k), I am finding it difficult to find a property that meets these targets, but I am very glad to have the definitions and formulas laid out!
    Sergio Altomare Rental Property Investor from Greater Philadelphia
    Replied about 2 months ago
    Thanks Beth. Yes, the metrics and tips are the ideal targets for MY objectives, but will not be achievable in all markets. Where are you looking to invest?
    Ross Williams Rental Property Investor from Boston MA, Big Sky MT
    Replied about 2 months ago
    Very good synopsis. Personally, I have never understood why traditional cash-on-cash return calculations are pre-tax. I always include real estate taxes in my calculations because I know I have to pay them! One additional important metric is the Debt Coverage Ratio or "DCR", which equals NOI/debt service. Most lenders want to see this metric at 1.3x or higher.
    Sergio Altomare Rental Property Investor from Greater Philadelphia
    Replied about 2 months ago
    Thanks Ross. You should always include property taxes in an NOI and cash flow calc, especially as it will be a major static expense that will only go up and not down. Anyone who does not will have serious repercussions.
    Vaughn K. from Seattle, WA
    Replied about 2 months ago
    Because that's how all businesses do their accounting? You have to know what your pre tax profit will be, whether from RE or from selling bobbles. Every persons post tax situation will be different too. Somebody may owe nothing because of various write offs or structuring, while somebody else may get nailed at the top bracket. People obviously need to think about tax implications, but returns are generally always calculated pre tax because of all the variables in tax situations.
    Sonja Sevcik
    Replied about 1 month ago
    That may be fine for an agent marketing the property but don't do that as the buyer! Know your tax situation and make sure that is in your numbers. After your mortgage, it's most likely your largest recurring and back-end expense. I not only run my ratios taking into account my current tax situation on a property and portfolio basis; but, I also run a full analysis of what my NPV after taxes is if I were to sell in 5 years. If it's not break-even I don't waste a lot of time. I like to know I'm going to get all my original cash back + a return, after taxes or it's just not worth doing. Yes - I'm now looking to 1031 exchanging properties but if I needed to sell for some reason ... I don't want to taxes to wipe out my return. I've done the math - - and sometimes it makes more sense to pay the taxes than to buy a crappy asset just because you want to avoid taxes.
    Haley McLaughlin from Knoxville, TN
    Replied about 2 months ago
    Thank you so much for this article!
    Sergio Altomare Rental Property Investor from Greater Philadelphia
    Replied about 2 months ago
    Glad you found it useful Haley.
    Gary Stevens
    Replied about 2 months ago
    I always start with a gross rent multiple. It's so easy you can do it in your head. Can be done with monthly or yearly numbers. I usually use yearly numbers. Formula is simple: Purchase price / yearly gross rents. So in your example it would be 600,000 / 75,000 = 8. A property will provide some cash flow with a gross rent multiple of 8 or less. The smaller the multiple the better. Once I have a 7 or less multiple I then start looking more closely at the property and start running the other numbers as above. But if it's a "normal" property all the other numbers will be sweet, including the DCR as mentioned by Ross. Again must be a "normal" property i.e. no major deferred maintenance, not all bills paid etc. I think for a long term hold you must include a percentage for capital improvements in your calculations in other BP articles that number is usually 8% but if the building is new that number could go down to 5% if older 10% etc.
    Sergio Altomare Rental Property Investor from Greater Philadelphia
    Replied about 2 months ago
    GRM is most definitely useful, but as you have all said, mostly as a sniff test on a property. I use it far more for smaller properties than larger ones. It's also worth noting that appraisers use it when looking at the income approach in their analysis. DCR is definitely a big metric as well when financing, which should fall into the right ratio when other metrics fall in line. Great discussion, thanks.
    Debbie J. Skora Investor from Texas
    Replied about 2 months ago
    @Gary Stevens GRM is not generally used to determine the cash flow of a property, in fact it does not take into account the information necessary to determine cash flow. It is more often, and effectively, used to determine how a property compares price-wise to similar properties within an area. You will hear investors talk about GRM in a particular neighborhood "should be 16-17". If you are looking at a property in that neighborhood where the GRM is 19, it is overpriced. Conversely, it is also a quick and dirty way to determine a fair price for a property in a given area that generates "$X" in gross rents. From there, you can bring in cap rate as a next-step quantifier, as it will also take into consideration the operating expenses of a building and get you closer to determining an expected cash flow.
    Gary Stevens
    Replied about 2 months ago
    Hi Debbie, I didn't say it would determine cash flow. I said it was a good/easy metric to determine if a property was worth a closer look. Generally speaking though if a property is more than 8 times gross and you are putting 20% to 25% down it will not cash flow. I've looked at hundreds of properties this way. When you run the numbers out you will find this to be true.
    Seth C. Investor from Monterey, California
    Replied about 2 months ago
    I agree with you Gary, I do 100x monthly since it's just moving the decimal point, and it happens to be pretty close to 8x annual. I never type a number in any spreadsheet if it's not very, very close or there is not some obvious advantage like it's virtually new construction.
    Gloria Sheridan Rental Property Investor from Marietta, GA
    Replied about 2 months ago
    I really like this article. I already calculate several of these measures (#1-3)- the ones produced by the BP calculators - but I intend to go back through all my deals and make sure I've calculated the rest of them (#4-6). I struggle with the fear factor: "Am I really doing the right thing?" when I'm deciding to take the leap and make another purchase. Even though the numbers are there on paper, I'm always anxious. Having more ways to size up an opportunity and specific suggested thresholds will make me a more confident investor. Thank you!
    Sergio Altomare Rental Property Investor from Greater Philadelphia
    Replied about 2 months ago
    Thanks for the feedback Gloria. Although the metrics help take emotion out of your analysis, there will be times when you can get close enough on the number and your gut takes over to get a deal done. When I was first starting I didn't do nearly as much due diligence as i do now, and looking back on a few deals they might not have penciled out. They turned out to be in neighborhoods where demand shot their value through the roof, so it worked out. All investors can and will make mistakes, so as long as you're doing the right amount of due diligence it's not worth selling on the fear. Good luck
    Logan Boesch Rental Property Investor from Minnesota
    Replied about 2 months ago
    Good article. Thanks for laying out the different valuation metrics you use and also giving a good target.
    Sergio Altomare Rental Property Investor from Greater Philadelphia
    Replied about 2 months ago
    Thanks Logan. What I should have also mentioned is that the targets are to find deals that are growth oriented. It's one of many strategies and fits many markets, but not all. Keep that in mind as you use them. Good luck!
    Israel Bautista
    Replied about 2 months ago
    I really appreciate this article. Am a newby, so that would help me move forward with more confidence. Thank you!
    Sergio Altomare Rental Property Investor from Greater Philadelphia
    Replied about 2 months ago
    Thanks for the feedback Israel. A great way to practice and find patterns of what good and bad deals look like I recommend getting on as many broker and investment property agents mailing lists as you can. From there set aside at least a day a week and practice running numbers. The good ones will eventually jump out at you without even having to pull out a calculator. From there you will only be analyzing deals that look good right off the bat. Be leery of BS marketing though. Good luck
    Yu Liu New to Real Estate from San Jose, CA
    Replied about 2 months ago
    As someone that is new to real estate, this was very informative! Thank you! Do you have any properties you currently own that are good deals and bad deals that you can give an example of for real life comparisons?
    Sergio Altomare Rental Property Investor from Greater Philadelphia
    Replied about 2 months ago
    Hi Yu. Shoot me an email and I can send you some analysis docs.
    Brian Shannon from Cibolo, Texas
    Replied about 2 months ago
    Thanks Sergio for giving me a great example to study for my corporate finance class tonight. Love the corollaries that apply to both corporate capital investment and individual real estate investment. Does NPV play into RE analysis with IRR?
    Sergio Altomare Rental Property Investor from Greater Philadelphia
    Replied about 2 months ago
    Hi Brian. Absolutely NPV plays into IRR. Do a google search for IRR and you'll get the equation. I use my target discount rate and let the calculator spit out the numbers.
    Colby Fuller Rental Property Investor from Nebraska
    Replied about 2 months ago
    Great article. However, with being a military investor who uses the no $ down VA loan process as well as the buy and hold strategy, I only really care about Cash Flow and the Cap Rate. Mostly the Cash Flow though. I would only be investing a few thousand, maybe to cover some closing costs or the funding fee. So my Cash on cash return rate would be through the roof.
    Sergio Altomare Rental Property Investor from Greater Philadelphia
    Replied about 2 months ago
    Thank you for your service Colby! That kind of leverage is huge in growing wealth, so congrats on using it properly. Good luck!
    Jerry W. Investor from Thermopolis, Wyoming
    Replied about 2 months ago
    Sergio, Was your example intended to be real or just random? When I run numbers I figure 10% for maintenance, 5% cap ex, and about 8.5% for vacancy. If I have to pay utilities and pay for management it will be a lot more. I don't know how you can get all of those done for 25% of gross income. What figures are you using for each category? I realize that the higher the price of rent in an area the less percent you can apply towards cap ex and repairs. Did you maybe just use a flat dollar amount per month per unit?
    Sergio Altomare Rental Property Investor from Greater Philadelphia
    Replied about 2 months ago
    Hi Jerry. I used 35% as the total amount of expenses. Of course the amount or percent to allocate for each category will vary, like vacancy and cap ex, so you will have to analyze accordingly. I see you are using 8.5% for vacancies, which is very high. We typically underwrite to 5%, but I have yet to manage a property with more than 2% in actual rent loss from vacancies. In larger multi-family you never want to be 100% occupied, as it will mean your rents are too low. Hope this helps
    Rob Milliken Wholesaler from Union, Maine
    Replied about 2 months ago
    Great Article, we are now looking for our first multifamily property. This information is appreciated. Also we ( another lender and ourselves) recently took back 39 acres. We have never syndicated or anything and will need to understand this for the multi units, but also need to learn so much more. Every bit will help. Thank you
    Sergio Altomare Rental Property Investor from Greater Philadelphia
    Replied about 2 months ago
    Thanks Rob. I suggest Joe Fairless' book, Best Ever Apartment Syndication to learn all the ins and outs of syndication. I'd love to help you out in any way, so reach out anytime. Best of luck
    Jim Young
    Replied about 2 months ago
    Is it still possible to find rental properties with a cap rate of 8% or higher that's not in the slums?
    Sergio Altomare Rental Property Investor from Greater Philadelphia
    Replied about 1 month ago
    Hi Jim. It is not easy, but there are properties that can be found at an 8 cap if you buy direct from owner or are value-add in decent areas. All markets worth investing in are saturated with FOMO individuals with more money than sense, so it's not easy. Good luck
    Woodly Tisme from Waltham MA
    Replied about 2 months ago
    great Article Sergio! I want to invest in real estate and its been on my mind for the last year, and I have been doing my research on the topic. Do you have any recommendations on how a newbie like me can get started in the game? Real estate is intimidating but I feel like once your in it you see it ain't all that bad.
    Sergio Altomare Rental Property Investor from Greater Philadelphia
    Replied about 1 month ago
    Hi Woodly. I would start with the BP store and be sure that you have read the books that seem to align best with your goals. Along with the forums, marketplace and aligning yourself with some local resources, including investor friendly agents, you can get in as soon as you are ready. You've already identified the area where most struggle, and that's getting the first deal done. Good luck
    Carlos Herrera Rental Property Investor from Philadelphia PA and San Juan, PR
    Replied about 1 month ago
    Great article Sergio. Really appreciate the compilation of key valuation metrics and providing us targets to shoot for, as the latter tends to be a bit confusing and it varies from article to article. I understand at the end of the day, I will end up with my personal metrics that makes sense to trigger a deal or not. Thanks!
    Sergio Altomare Rental Property Investor from Greater Philadelphia
    Replied about 1 month ago
    Glad you enjoyed it Carlos. Yes, as you use the metrics more and more against the strategies you are targeting you will find which are the the key to use and the numbers that will work for you. Good luck