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Updated almost 7 years ago,
What is decent, good, great numbers to achieve on Rental Calcu
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.