First time rental purchase

[Andy Hughes]

I was wondering what people think the best KPI's are for evaluating and purchasing a rental property (SFM to small multi). I see a lot of sites using Cap rate and yields and all that stuff but is that really necessary for smaller rental purchases (not big apartments/commercial buildings)? It seems like focusing on CoC return, cash flow, etc are the things you should focus on. I have flipped a lot of houses but am a newbie into the rental market. Any insight advice for evaluating would be appreciated. I know there is a calculator on BP but I always like to understand the rationale behind the numbers.

TYIA