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Updated over 7 years ago on . Most recent reply

User Stats

19
Posts
2
Votes
Aleff Pimenta
  • Sao Paulo, Brazil
2
Votes |
19
Posts

ROI, Cap rate, Cap ex, COC? in practice

Aleff Pimenta
  • Sao Paulo, Brazil
Posted
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

User Stats

119
Posts
101
Votes
Shannon Slade
  • Forney, TX
101
Votes |
119
Posts
Shannon Slade
  • Forney, TX
Replied

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

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