The BP Rental Property Calculator
No Replies
Ted Kuhlmann
Real Estate Broker from Chicago, IL
posted over 3 years ago
Hey All,
I have been on here for around a year and finally became PRO. Started using the calculators on a few potential buildings i see and had a few basic questions for you guys/gals that have used the calculators...
- Do you have a preference/range of where the Cash-on-Cash ROI should be? )I feel like i have heard 10-12%?)
- What is purchase cap rate(is it normal cap rate?) and what is pro forma cap rate?
- Is there a rule of thumb as to what monthly cash flow is acceptable/good?
- what is the 50% rule?
I am looking to buy/hold a building annually over the next few years and am in the process of looking for #2. I am getting solid monthly cash flow on property #1, but my Cash-on Cash is less than I thought it was going to be (10%). Would love anyone to just chime in and point me in the right direction going forward so i am not missing something.
Thanks all and look forward to many discussions in the future!!
- Ted
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