Good Deal Or Not?

I have 4 properties under contract that will generate a total +CF of $725.00/month. This is using 75% total rent - pymt, ins, taxes. Is this considered pretty good or is there a typical amount/unit investors look for when buying rentals?

Comments(2)

  • classimg24th May, 2004

    We use the following criteria in determining if the property is a "Fit:" for our business model:

    1- Location, Location, Location (resale)
    2- Market Value
    3- Profit / Performance
    4- Monthly Cash flow analysis
    5- Short term (6 month) analysis (holding, maintenance, upkeep)
    6- Exit strategy / Property Investor feedback
    7- Property Portfolio Risk Matrix (Single family, townhouse, condo, etc.)

    This is a snapshot of our high level approach your mileage may vary.

    Eric & Rosa
    [addsig]

  • stevent2324th May, 2004

    How do you fit all that into a formula? Do you get expense info from the seller or do you examine the property well enough to get your own #s? Outside of taxes, ins, and payment how do you figure for your other expenses.

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