BiggerPockets Rental Calculator Analysis
Hi, I’m a newbie who is thinking about upgrading to the pro membership in order to help with my real estate investing business. I’ve attended a few webinars and recently toyed around with the rental property analysis calculator. I’m trying to obtain a level of fluency to be able to interpret what I’m seeing, however I’m having a problem figuring out some of the formulas of the calculator and is wondering if someone could help decipher the formulas?
Monthly Cash Flow = Income – Expenses
Pro Froma Cap Rate = ?
Purchase Cap Rate = ?
Debt Coverage Ration =?
ARV based on Cap Rate =?
Income-Expense Ration (2% Rule) =?
Thanks in advance!