All Forum Posts by: Shreya Modi

@Bill Brandt Bill, thanks for your feedback and showing me a great calculation/example. I followed you until almost the end but lost you “from taking the cash out of $140k and your last paragraph.” How can someone make an income and profit from a property if the cash flow is negative?

Also, in your example, if I were to do a 30 yr Mtg... that’s a longgg time before I can see a good cash flow coming in and during this time the rent will probably increase as well with the property values. So I understand your point of not getting hung up on the numbers but isn’t conducting a proper calculation a heavy decision maker when analyzing and seriously considering a property?

@Eric C. Thanks for your feedback. I have heard about the IRR but still learning so not sure how to calculate it. Reading my first real estate book on "Rental Property Investing" by Brandon Turner.

My goal will be to buy and hold since I am not looking for having the income now (but if I get a good CoC then it's better). I will be investing for the long haul so I could build a strong and solid real estate portfolio.

@Tom Scott

Hi Tom,

Great insight on the areas of Gainesville. I live in the NW part of town but I am new to REI. This post is pretty old so not sure if we can get connected.

@Nick B.

Ok, now it make sense. So is it worth looking at or calculating the ROI when deciding on which property to invest in not knowing how long will I be holding that investment property?

I guess the other way of asking this question is "Do I need to guesstimate the ROI when considering a property to buy since I don't know how long I will be holding it?" Or can it be enough just to calculate the CoC?

@Nick B.

If I am understanding this correctly, then CoC is what we are receiving (in rent) in comparison to the purchase price and the ROI includes the CoC plus the equity growth of the property hence the Capital Gains?

@Nick B.

Thanks for your prompt reply. So then what is the difference between CoC and Capital Gains, wouldn't that be the same thing?

Good Afternoon Everyone,

I am very new to REI and also on BP. I am currently using the free version of the DealCheck App to analyze properties. The property analysis tool shows two different categories for the "cash on cash return" and the "return on investment". Their numbers are different as well but I have heard Brandon Turner just talk about both together CoCROI. So it is different or is it the same thing?

Please assist.

Thank you.

Shreya