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Posted about 6 years ago

5 Simple Formulas Every Buy & Hold Investor Needs to Know

Regardless of their experience level, at some point all real estate investors are faced with the analysis of a particular deal: Will this property make a good investment? Is it a good performing rental property now? Can in be a good performing rental property in the future if we buy it right?

And how the heck are we supposed to know that going in?

The following video discusses 5 key metrics every buy and hold real estate investor needs to master, including:

  • Cap Rate
  • The 50% Rule
  • The 1% Rule
  • Debt Service Coverage Ratio
  • Break Even Ratio
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Once you master these five simple formulas, you can quickly and accurately analyze any potential investment property!


__________________________________

Jeff Copeland, Property Manager in St Petersburg, FL

Jeff Copeland is a real estate broker and property manager in St Petersburg, Florida, and broker/owner of Copeland Morgan LLC. You can find him on Bigger Pockets under @Jeff Copeland.




Comments (2)

  1. @Jeff Copeland Thank you very much for this info! 

    @John Thedford Thanks for the recommendation. I'll purchase that book.


  2. a must-have book is called "what every investor needs to know about cash flow" by Frank Gallinelli