Your formula for analyzing great REI Opportunities

[Julien Rickard]

Hello Amazing bigger pockets community,

After reading multiple books on REI investing such as Million Real Estate Investor, ABC's of Real Estate Investing, etc, Some of the rules that I am frequently seeing is the cap rate formula and the 2% rule for cash flow analysis. I wanted to see what are the best true time and tested formulas used by active investors that you use to analyze a deal. What is your criteria/formula for cash-flow analysis on your investment properties. I am basing my numbers on the total investment and not the purchase property.