Running the numbers as a newbie, Cap ex, COC, NOI oh my!
HI BP Community. I've been following the forums for some time now and I would love some clarity about how investors are 'running the numbers'. Numbers have never been a strong point for me and I would like to improve this starting now. I understand there are different formula's that work for commercial, big MF and so on, so for example in this case I would like to determine what I would like to use to ascertain value in SF flips and small MF (less than 6 units). As a new comer trying to follow 1% rule, cap rate, CoC, NOI, 50% expense rule and so on and so on, can be mind boggling. So far it looks like everyone has their own way of calculating value and I'm not sure which way/s are best for me to use. I'd love to hear from more experienced investors in similar market class (SF flips and small MF buy and hold) about which calculations they use to give me a better idea of how to make sense of the numbers.