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Updated over 6 years ago on . Most recent reply
Running the Numbers on a Potential Deal
In many of the recent Bigger Pockets podcasts there has been discussion on strategies for running the numbers and calculating the potential cash flow when searching for a deal. In one particular podcast, they mentioned that one of their buy criteria's was that the cash flow per door on a multi-family deal should be over 100$ for their respective location.
I was wondering if anyone could offer any advice on how you are running these numbers and key characteristics you're looking for when calculating the potential cash flow? Specifically, is there a standard down payment percentage that most investors use when calculating their potential mortgage? How does the 1% rent to value ratio rule work into these calculations?
I know this is fairly broad but any advice would be appreciated! Thanks!
-Jacob Dodge