Updated almost 5 years ago on . Most recent reply
Rental Property maximum purchase price
I am wondering what are some different ways that we can calculate the MPP of a rental property. The formula for a flip is quite straightforward where its MPP= Sales price- Closing costs- profit- rehab cost. Do I consider the profit in a rental formula as my yearly net profit from rental income? Or would I consider the same MPP as a flip and offer the same way I would a flip deal, and then use the cash on cash ROI formula separately?