Updated almost 5 years ago on . Most recent reply
Qualifying a deal in the Lehigh Valley
We have purchased a few multi-unit properties in the Lehigh Valley, and we are using the criteria that if it cash flows after accounting for all expenses, including PM, cap ex, repairs and vacancy, then scoop it up as it will be a good long term investment given how the area is booming. We use 12% for PM and 20% combined for the other expense areas I mentioned. Are we thinking about this correctly?