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Updated almost 7 years ago,

User Stats

44
Posts
7
Votes
Elian Stuff
  • Investor
  • MANTECA, CA
7
Votes |
44
Posts

What is decent, good, great numbers to achieve on Rental Calcu

Elian Stuff
  • Investor
  • MANTECA, CA
Posted

Hi BP

I have two rentals in CA.  I have them for many years.   This is my first time, I attempted to see my true numbers after I entered it into the Rental Property Calculator here on BP.   I had no idea about these terms and vocabulary used in evaluating rental property.

My main question is,   What is a decent, good, and great number to achieve on rental houses in general  for these categories;

Pro Forma Cap Rate

Cash on Cash ROI

Purchase Cap Rate

Income-Expense Ratio 2% rule

Debt Coverage Ratio

Typical Cap Rate

Gross Rent Multiplier

Both houses of rentals of mine, or single family ranch house.  

Can you tell me for each above, give me a decent  number target, a good #,  and what is a great # to achieve on each item above.

Also, for me,  I have two rentals,  1st bought in 2001,  2nd bought in 2014.

What is a decent, good, and great $$ amount for cash flow to expect YOU would expect on a home purchased back in 2001, & 2014.  In general,   I am aware it depends on  rates, years, etc on loans,  vacancy rates.   But in general, what would YOU expect for cash flow per month since YOU are  more seasoned  landlord than I am for property you bought like me back in 2001, & 2014 ?

I will share my data soon,  I hope my numbers are not too low,  and crappy,   I am looking for decent numbers, what is that number, I have no clue.     

These tools I have found here on BP, is eye opening,  I have never did any spread sheets ever.    I just try to figure it out on basic paper and calculator,   I have only 12th grade education.  But I am lucky I was able to save enough cash to make down payment on two houses as rentals with no education.     Both cash flow at this time, But what is a decent, good, and great return as monthly cash flow, I have NO idea.   What is those target #'s for you ?

I hope you can help me with my numbers on Rental Calculator, and  Cash Flow questions ?

I have no plans on selling, I am long term hold for 25 + years, I love my tax deductions.

I am planning on buying  another rental in Manteca area by June 2019.  I have my pennies saved for 3rd house.

See you soon at the next BP Meetup in the San Jose or Stockton/Manteca area.

Elian.