Setting key investment metrics

[Tyrone Marson]

I have my first buy and hold under renovations currently and I’ll be the first to say it is not a home run deal. Nevertheless, I have been learning a lot. With that said, I have been working on developing some metrics to help me going forward whether to pull the trigger on a deal or not, my metrics are based solely on my personal finances and what I want to achieve long-term. Would definitely welcome your input on if these goals can be realistically met in the Baltimore County/Anne Arundel county markets that are in close proximity to the Baltimore metro area. I have nooooo interest in the city. See my goals below. All goals are being assessed based on a 5 year period and represents my desired net cashflow by year 5. The first goal is that the property should be able to rent for 1.5% of purchase price, once that is met, I take a deeper look to see how cash flow looks by year 5

SFR - $850/month

Duplex - $1275/month

Triplex - $1700/month

Quadruplex - $2125

What are your thoughts on these goals for my desired market.

[Gayle Melnick]

@Tyrone Marson

Are these numbers the rent you're looking to charge or the cashflow you're expecting? Not sure what the unit of measurement is.

I'd be interested to see the details of your first deal. I think most people probably don't hit a home run on the first deal. If you share what you've learned, we can all benefit from your experience.