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Updated about 2 years ago on . Most recent reply

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Mark Gould
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When calculating a deal, do you calculate at the long term rental rate?

Mark Gould
Posted

New and trying to find which lane to pursue. 

I’m curious when you are calculating your deal, do you go at it the same way you would a long term rental? So for example, if I figure mortgage is $1000, and when I calculate everything I get  enough to cover everything, but no real cash flow and not what I would normally look for in a long term rental to consider it a good deal. But since mid term brings in more, would I change my standard, or keep it the same?

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Eliott Elias
  • Investor
  • Austin, TX
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Eliott Elias
  • Investor
  • Austin, TX
Replied

There are endless ways to figure out if a deal works for you, some investors in expensive markets lose money every month to hold the property. My criteria is to buy with equity, 30% at least. 

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