Good deal or not!! How would i know?

General Real Estate Investing
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Good deal or not!! How would i know?

Trevor Neale
Rental Property Investor · Newark, NJ · Member since 2023 · 57 posts · 23 votes

What calculations do I have to use to see my Cap rate or to see if the cash flow is a good deal ???

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  • Kasi V.
    Investor · Texas City, TX · Member since 2018 · 54 posts · 22 votes
    1y

    Hi Trevor, there are so many metrics to check while analysing a property. My main criteria is positive cash flow and CoC %. For this I have a calculator which gives all the key metrics and it takes less than 2/3 minutes. Only if the numbers work I dive deep. DM me if you want to know more.
    Good luck investing. 

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  • Christine Mulkins
    Rental Property Investor · Medford, OR · Member since 2017 · 94 posts · 115 votes
    1y

    Those are my 2 metrics also: Positive cash flow and ROI.
    For ROI, take your annual cash flow and divide it by your total cash invested. My husband and I aim for an ROI that beats the 10-yr treasury yield. At this point in time, a 7%+ would be a decent ROI and only if there is an opportunity to raise rents or cut expenses immediately after acquiring the property. 

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  • Gregory SchwartzBusiness Member
    Rental Property Investor · College Station, TX · Member since 2016 · 1k+ posts · 1k+ votes
    1y

    I look for positive cash flow and greater than 12% IRR on a 5-year timeline (assuming I were to sell in year 5) while running conservative but realistic numbers for maintenance, vacancy, Capex, etc.

    For me and my portfolio, those numbers allow me to sleep well at night. 

    [email protected]443-812-0357
    Schwartz Realty Group5116 Reviews
    WebsiteView Page
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