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Updated about 7 years ago on . Most recent reply

Account Closed
  • Austin, TX
24
Votes |
145
Posts

how do i know what my cash flow is goin to be?Can U analyze this?

Account Closed
  • Austin, TX
Posted

i know loopnet isnt going to have any good deals, im just using it to practice analyzing properties.

Once i find out the Income and expenses, i get the NOI by using the 50% rule.

Next i get the cap rate right? So this property that im looking at, has a NOI of 320k. I now need to divide 320k by my mortgage. But i dont have a mortgage and i dont know how i am going to fund the deal. So how would i figure out my cap rate?

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208
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Scott Skinger
  • Rental Property Investor
  • Barrington, IL
309
Votes |
208
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Scott Skinger
  • Rental Property Investor
  • Barrington, IL
Replied

Don't take this the wrong way, but you need to read...at least the basics first, before you shotgun a bunch of questions. I'm willing to help, @Jordan Moorhead is willing to help and so is the majority of the BP community but you need to take some time first to educate yourself. Read this https://www.propertymetrics.com/blog/2013/06/03/ca... and this https://www.biggerpockets.com/forums/12/topics/134... and really any commercial real estate book, podcast, site out there.

At a minimum, memorize the formula:

Cap Rate = NOI/Value

or expressed another way 

NOI/Cap Rate = Value

Practice this, analyze properties and confuse yourself first...you will learn the most this way. And then ask questions to understand the fine points.

Again, not trying to be a jerk but you will get a lot further this way. Good Luck!

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