Metrics For Buy & Hold Investments

[Zackarias Aitchison]

Hey! 

What metrics do you personally use to decide whether a property would make a good buy & hold investment or not? 

Cash on Cash?

Discounted Cash Flow?

Internal Rate Of Return?

Net Present Value? 

Cap Rate?

A combination of these and others? 

Let me know! I'm curious to see how different investors analyze their potential investments. 

[Derek DeVerna]

@Zackarias Aitchison

I rely on very simple elements when assessing a potential buy and hold investment.

What would be my all in costs to stabilize the building? - purchase price, closing costs, holding costs, rehab costs.

Would I want to own this location forever? 

What is my projected monthly cashflow?

These essential questions have helped us build a portfolio of quality buildings/locations.