4d ago (edited) in General Mastermind Discussion
Rental Analysis
Im getting a lot of leads in rental markets and need to learn how to analyze these better. I realize cash on cash and cash flow are the big elements to consider instead of ARV/ rehab etc.
I’m wondering what all you guys consider when analyzing what you should pay for a rental property and how you land at that price. Is cash on cash more important or cash flow?
Right now im just determining what the rent would be, subtracting the PITI for a 30 year 7.5% loan from that rent (assuming all landlords buy with a loan), subtracting the 5% repairs/ maintenance, 5% vacancy, 10% capex, & 10% management fees —> cash flow.
And if they need to rehab it a little to get rent ready, factoring that + purchase price + all closing fees to get the cash on cash.
Not sure what the cash flow &/or cash on cash need to be to be considered a deal that wouldn’t have trouble getting assigned within a couple months.
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Rental Analysis
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