Skip to content

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions

Posted over 7 years ago

5 Simple Formulas Every Buy & Hold Investor Needs to Know

Regardless of their experience level, at some point all real estate investors are faced with the analysis of a particular deal: Will this property make a good investment? Is it a good performing rental property now? Can in be a good performing rental property in the future if we buy it right?

And how the heck are we supposed to know that going in?

The following video discusses 5 key metrics every buy and hold real estate investor needs to master, including:

  • Cap Rate
  • The 50% Rule
  • The 1% Rule
  • Debt Service Coverage Ratio
  • Break Even Ratio
Normal 1565454169 Mfg Video Pic

Once you master these five simple formulas, you can quickly and accurately analyze any potential investment property!


__________________________________

Jeff Copeland, Property Manager in St Petersburg, FL

Jeff Copeland is a real estate broker and property manager in St Petersburg, Florida, and broker/owner of Copeland Morgan LLC. You can find him on Bigger Pockets under @Jeff Copeland.




Comments (2)

  1. @Jeff Copeland Thank you very much for this info! 

    @John Thedford Thanks for the recommendation. I'll purchase that book.


  2. a must-have book is called "what every investor needs to know about cash flow" by Frank Gallinelli