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Taylor Smith
  • Rental Property Investor
  • Seattle, WA
9
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51
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Metrics and formulas on multi families

Taylor Smith
  • Rental Property Investor
  • Seattle, WA
Posted
I know every metric is important when it comes to analyzing a property. But when you look at a 2-4 unit property which is more important. The NOI, Cap Rate, multiplier when anyalizing à deal? Also how do you factor in your mortgage payments into your math when analyzing a deal. Some help would be very appreciated!!!

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Theo Hicks
  • Rental Property Investor
  • Tampa, FL
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Theo Hicks
  • Rental Property Investor
  • Tampa, FL
Replied

@Taylor Smith cash flow = income - operating expenses - debt service. You are referring to NOI, which is income - operating expenses. If the property has a negative cash flow then it is not a good deal, unless you are in to negative cash flow for some reason.

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