Analysis and Key Metrics

[Cp Rahaim]

I have several questions as I try to finalize my analysis procedures.

1. When analyzing a deal do you look at cash flow per unit after debt or cash on cash return? I ask because I've seen people saying they like $100-$200 per door but if that equates to 3% COC return that's no good. And if you are making a good COC return but the dollars per door are tiny that's no good. Seems like you need a combination of $X per door AND a COC return of Y%.

2.  Cash on cash returns are typically after debt.  But what if there is no debt?  Do you have a cap rate or a before debt cashflow that you like to see?  Similar to question #1 but looking for metrics to use before debt.

3. How do you account for turnover costs? painting, repairs, commissions, etc. I don't think I've ever seen such costs in an analysis.

Thanks

Cliff