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Updated almost 5 years ago,

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Rafael Gomez
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What numbers to calculate to insure it's a good investment?

Rafael Gomez
Posted

Hello Everyone. I'm looking to start investing in real estate some day soon. I am a college student studying Construction Management and thinking about getting a minor in real estate. On top of that I'm reading books on real estate investing and listening in on the Bigger Pockets podcast. I'm learning alot but I am still confused on what numbers I need to calculate in order to determine if a property will make a good investment. I'm looking to get into rental properties with the occasional flip here and there. These are the few things I can think of.

Down Payment

Mortgage Payment

1% Rule

Cash Flow

Price to Rent Ratio

Cap Rate

ROI

Cash on Cash Return

Is there anything I'm missing? Also what would be the ideal numbers for the Cap Rate, ROI, and the COCR

Thank out in advance for you advice.

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