What are the most important metrics when analyzing rentals?

[Zachary Bliss]

Hello BiggerPockets,

I am curious what are the most important numbers investors are looking for when analyzing a rental property? After watching several videos on BP YouTube, I am using the following criteria:

Cash on Cash ROI = 10-12%+

Cash Flow = $100+ a month

Average Return = 15% a year

Are there any other important metrics I should be looking at? I’ve been running a lot of deals through the BP analyzer calculator, and so far I haven’t found any that match these criteria, everything has been around like 6-7% cocroi. I’ve been using:

5% for Vacancy

5% for Cap Ex

5% for Repairs

10% for property management

2% for closing cost

$100~ a month for insurance

[Jonathan Styer]

Hi Zachary, 

I think your numbers look right for a good investment. I would probably want to see a little bit higher cashflow however. What area are you looking in? Maybe you need to broaden your search to other markets if it doesn't work in your market. These numbers can be found in Columbus, OH. Best of luck!