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Updated almost 4 years ago,
What are the most important metrics when analyzing rentals?
Hello BiggerPockets,
I am curious what are the most important numbers investors are looking for when analyzing a rental property? After watching several videos on BP YouTube, I am using the following criteria:
Cash on Cash ROI = 10-12%+
Cash Flow = $100+ a month
Average Return = 15% a year
Are there any other important metrics I should be looking at? I’ve been running a lot of deals through the BP analyzer calculator, and so far I haven’t found any that match these criteria, everything has been around like 6-7% cocroi. I’ve been using:
5% for Vacancy
5% for Cap Ex
5% for Repairs
10% for property management
2% for closing cost
$100~ a month for insurance