2-4 unit evaluation, Best method

4 Replies

Promotion
BiggerPockets
The one-stop-shop for REI
Find Local Home Improvement Pros!
Check out our network of trusted, local contractors for all of your home improvement projects.
Find a Contractor
Originally posted by @J Michael Fimbres:

@Christopher Phillips, thx for your reply. So do you mean the GRM? I find these to be so inconsistent even in the same neighborhood. What other cash flow models do you mean? thx

 Residential rental properties are analyzed based on net cash flow. Rent income less expenses and reserves = net cash flow. Goal is to have positive net income.

@Christopher Phillips, thx again for your reply. One last question, going back to my original question how do you apply that model to a price evaluation...once you know the cash flow? Thanks, I appreciate your time.