The BP Rental Property Calculator

[Ted Kuhlmann]

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