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Updated almost 7 years ago on . Most recent reply

User Stats

6
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1
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Jacob D.
  • Virginia Beach, VA (Virginia Beach)
1
Votes |
6
Posts

Running the Numbers on a Potential Deal

Jacob D.
  • Virginia Beach, VA (Virginia Beach)
Posted

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

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