Updated almost 9 years ago on . Most recent reply
Units or properties
what do you guys think is the best way to determine how many properties do you need to reach your income goal. in other words should I base it on the number of units I need to get to my monthly income goal or the number of house/buildings to produce a certain number income per building to get to my goal.
For example if my goal is to make $5000 monthly cash flow should I try to figure out how many units do I need to get to that goal or should I just go by how many houses/properties do I need to get to that goal.
Most Popular Reply
Not exactly. Cap rate measures return on investment if that investment was purchased with cash. It does not tell you if an investment is better or not solely based on the number. Is 20% cap better than 10%? Yes on the surface, but what if you need a bullet proof vest and a gun to collect rent in that 20% cap neighborhood? There is more to this than a single number.