How do you do your numbers on potential rental properties?

Question

Ive been analyzing properties but don't know what % is good to use for

* capex

* vacancy

* repairs

And what cash flow is good? Is it ok 150/ per door ?

Im researching conflicting information where some says 200 per door and others say over 100 etc.

Is their a standard ? This is for multi families not single family

Ali Boone · Answer

Everything you're asking depends on the situation. CapEx for a fixer-upper will be totally different than it will be for a turnkey, vacancies vary between property types and locations, and repairs depend on the property condition and the quality of the tenants. Cash flow varies too depending on the price of the property. $150/door would be great on a cheap property potentially, whereas it'd be terrible for something more expensive. You need to analyze the cap rates or the cash-on-cash returns to decide if it's good or not... because it's all relative.

Not sure if these will help, but maybe-

https://www.biggerpockets.com/blog/2013/03/30/batt...

https://www.biggerpockets.com/blog/2013/01/19/real...

Not sure if these will help, but maybe-

https://www.biggerpockets.com/blog/2013/03/30/batt...

https://www.biggerpockets.com/blog/2013/01/19/real...

Jarrod Stotmeister · Answer

Ali's spot on. Cash flow is relative to the deal. Odds are the conflicting information is most likely talking about different markets/products/price points/area grades etc.

How do you do your numbers on potential rental properties?

2 Replies