Investor · CT · Member since 2023 · 141 posts · 28 votes
I am overwhelmed by the number of different formulas that are out there for rental property investing and I don't want to overpack for lack of better words my investing formula arsenal so I would like to know what ones are the best to use and why
The ones I currently use include: COC, NOI (and NIAF), Cap rate, ROR, ROI, and IRR=
But I also have heard of NPV,
I am also not including any "rule formulas" aka 1% and 50% as those are simply guidelines to follow and not complicated formulas
Let me know if I am missing any or don't even need to use some of the ones I am using
I am overwhelmed by the number of different formulas that are out there for rental property investing and I don't want to overpack for lack of better words my investing formula arsenal so I would like to know what ones are the best to use and why
The ones I currently use include: COC, NOI (and NIAF), Cap rate, ROR, ROI, and IRR=
But I also have heard of NPV,
I am also not including any "rule formulas" aka 1% and 50% as those are simply guidelines to follow and not complicated formulas
Let me know if I am missing any or don't even need to use some of the ones I am using
Thank you,
Peyton LaBarbera
It depends what you are focusing on. For example I'm currently doing a BRRRR on my 2nd rental property. So I'm focusing on keywords like how much I put down for down-payment. How much is my rehab going to cost me when it's done. The ARV (after repair value) so I can do a cash out refinance. My COC return when completed. How much fair market rent I can charge. Let us know what strategy you have in mind and we can all help and guide you.
Investor · CT · Member since 2023 · 141 posts · 28 votes
2y
I am focusing on the brrrr exit strategy as well but I guess I should have also mentioned that I am also interested in commercial real estate investing as well mainly apartment buildings since I can utilize forced appreciation better with increasing my NOI
So I guess my question really is this... Do I really need all of these extra formulas for the brrrr strategy? And... Do I need all of these for commercial RE investing or no?
I am focusing on the brrrr exit strategy as well but I guess I should have also mentioned that I am also interested in commercial real estate investing as well mainly apartment buildings since I can utilize forced appreciation better with increasing my NOI
So I guess my question really is this... Do I really need all of these extra formulas for the brrrr strategy? And... Do I need all of these for commercial RE investing or no?
My commercial RE Investing strategy would be a mixture of buy and hold and brrrr
And to add to the formulas I have heard of I would like to add break-even analysis on top of NPV