What does analysis of properties actually look like? What does it entail? Want to own multiple properties but want to do it the right way.
1 - Sale Price when sold - Cost to buy - cost of rehab - misc costs = Profit
2 - Incomes/month - expenses/month = Cash Flow
3 - Total Out of Pocket Cost to REI = # of years to Recover all Cash Spent (REI Actual Cost)
Cash Flow/month x 12
4 - All income to REI (first year only) = Cash on Cash Return
All cost to REI (first year only)
1 - Cost to Buy/rehab is what comes "out of pocket (cash)" for REI
2 - Cash Flow must be positive or your "cost" increases every month it isn't positive.
3 - In all cases, true Profit is achieved only after REI has recovered all of the cash (cumulative) they have put in.