For a quick analyzation of a property, is this right?

[Jim Growfer]

I've been using this as a filter to see if a property is worth looking into further.  Is this accurate?

I look at the Gross Income and then do 50% of that to = NOI

I look at the purchase price and do 7% interest to figure out my Debt

and then I subtract.

Example: $2million purchase price

300k Gross income

150k NOI

140k Debt

= 10k Cash Returns a year

[Omar Khan]

@Jim Growfer These filters are old and only work in very specific markets for particular assets only. Your best bet would be to understand your local market (or the market where you want to invest) by going through the T12 of the listed properties. Even then each market has different submarkets with their own characteristics and revenue/expense structures.