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?
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]
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.