Million Dollar Question: what is a great rental property

[Daniel Coleman]

What is great rental property in terms of ingredients for example:

What is a good Cash on Cash Percentage?

What is a good Cap Rate?

What are key characteristics of a good property? (your expenses should never be this percentage of your income)

Explain the 1% rule?

[Russell Brazil]

There is no such thing as good, great, or bad with any of the numbers. Everyone has different risk tolerances and goals, and the risk of every property, market, and class is different. 

When we try to classify things as best and worst in this arena, inevitably prople think higher proforma cash flows are good, when they are in fact neither good or bad. They are a reflection of the risk of the market, property, class, and tenant base. 

Instead people should focus on what types of properties fit their goals and risk tolerance.