All Forum Posts by: Graham Armstrong

Ive been doing property analysis daily now, just want to see if its being done right, and if you have anything to add, i would greatly appreciate it !

*Each home I am using a 20% down payment structure & 50% for expenses*

8 Queens st, Middleton. *** *** Triplex, $128,900
Rents $1700 . Mortgage $460 month . Expenses 50%
$10,200 ($1700 x 12 / 50% = $10,200)   /  $103,120 (80% of 128,900) = 9.8% Cap Rate
$10,200 / $ 25,780 (20% of 128,900)  =  39.5% Cash on Cash

$10,200  /  12  =  $850 (cash flow per month)  -  $460 (mortgage)  =  $390 cash flow or $4,680 annual cash flow.

That's a great point Chris! 

Would you say that there is a general number you shoot for when researching potential investments??

Thanks!

Hey everyone, so there's lots of opinions on what a good cap rate is, the best cash on cash, etc... but I want to hear from you, what's your actual cap rate and cash on cash averages??? 

7% cap? 10% cap???

20% CoC ? 68% CoC

Don't just geuss, look at your propertys and find out the truth!

Oh Ok, I remember reading something like this now that you mention it,  
So simply change the 30% to 50%?

I think I am able to do numbers for homes, however, I get the terminology really confused so id like to just double check that this is correct.

Thanks so much

( note that I'm taking 30% for expenses to be safe )
$199,900 / 4 units,  3 x2 bedroom & 1 x1 bedroom / Total rent: $2310
$2310 x 12 = $27,720 - expenses (30%) = $19,404 ( This is the NOI, Correct?? )

$19,404  divided by  $199,900 = 9.7% ( Cap-Rate, correct?? )

$19,404 divided by  $ 39,980 ( 20% down payment ) = 4.85% ( cash on cash, correct ?? )

Thanks for taking a look