Metrics to measure rental properties performance yearly

[Buyan Thyagarajan]

Hi Guys,

I am doing a financial review of my rental homes and would like to measure the performance of my homes. I do the following .

1. Get all rents for 2021 and subtract the expenses which are Principal, Taxes, Insurance  and rehab work.

2. I compute the Net income which is always very low for me for one of my rental homes like less than 100. 

I want to know what metrics do you guys use to measure the performance of your rental properties on a yearly basis? How do you decide one property is better compared to others and How do you decide it is time to sell a property? Any help on this would be helpful.

Buyan

[Jaron Walling]

@Buyan Thyagarajan The search bar is your friend. Excel is your friend.

If you're not already using the website version of Bigger Pockets you need to do that. There is a metric ton of information on how to run the numbers for an investment property. I'd start researching and building a fresh new spreadsheet. There are other expenses to factor into buy/hold properties. If your calculations only factor PITA and cash-flow is $100, you're most likely cash-flowing negative. It's costing you money every month. 

You need calculations for ROI, COC, and more. Gathering property tax info, rental estimates, and seeing the result is everything. It's a snapshot of the properties performance.