How the numbers work..

[Lucas Redd]

I want to start analyzing deals everyday and kinda understand how but kinda don't... I understand how to do the numbers to get cash flow but don't understand how to get Cap Rate and Cash-on-cash... also, what are the ideal percentages that I would want to see from each deal? Any help is greatly appreciated. Thanks!

[Ned Carey]

@Lucas Redd If you don't already know how to use it or understand it, it is not an important metric for SFH. A lot of people get confused over cap rates. I know there are discussions here and it is easy to google the formula.

Cash on cash return is the net positive cash flow after all expenses divided by the amount you invested (your own funds, not borrowed funds) There are deal calculators under the tools tab and free guides under the education tab which might help explain.