Metrics for investing

[Craig Osterloh]

What metrics do you find most valuable when choosing an investment?

Of course cash flow is always the first metric I look at, but what about GRM (gross rent multiplier = purchase price/ annual rents)? Cap rate? Others?

I have noticed recently that the GRM for single family homes in the Utah market are coming in way high. 14, 15, and 16. Properties I purchased 8 years ago were 10 on well maintained property! It seems this troubled market is not that troubled. At least when it comes to rental properties.