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Updated over 7 years ago on . Most recent reply
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ROI, Cap rate, Cap ex, COC? in practice
Hi everyone.
I'm new in RE world and I'm trying to figure out this and I couldn't by myself.
Could someone explain how this works in practice or point some post like this to me, please
Scenario:
Single Family House
Asking price: $100K
Money down: 15%
Mortgage: 6% interest in 30y
Rent: $500/month
1. Cashflow is: $250, before expenses right?!
2. COC is 20%? What's the difference between ROI and COC?
3. How do I calculate the Cap rate?
4. What's Cap ex?
5. What else is importante to calculate to see if it is worth?
Cheers!!
Most Popular Reply
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Monthly rent will not cover the mortgage service.
1. and 2. no monthly cash flow with your numbers, the only return on your investment in this property will be appreciation(maybe) and debt reduction,
3. Ratio of net operating Income to property asset value
4. Capital expenditures
5. Read Read Read on this forum
BAD DEAL