All Forum Posts by: Abdul Azeez

Folks - I am running some numbers on listings and have the following question regarding cash flow versus cash on cash. Brandon advises a rule of thumb of $150/unit. I have also seen him advocate something greater than 10% on COC. When I run my numbers I am finding the following scenarios. How do I go about determining a good investment from bad based on these? Per unit cash flow seems good but COC seems low. If I need to use both of these metrics, I feel I will have no houses to pick in the market where I am (NJ) and I need to close down my real estate endeavors. Kindly advise. I am getting incredibly frustrated running numbers and I still have hundreds to go.

Property 1 - CF $557 COC 9.28%

Property 2 - CF 449 COC 5.22%

Property 3 - CF 287 COC 4.49%

Folks - I have taken a few steps since joining bigger pockets. These include combing through and acquiring as much knowledge as possible, listening to several podcasts, running property deal analysis using active listings and meeting with my realtor (he listed my house previously and so I have a relationship) who has configured me for MLS alerts for multifamily as well as non-multifamily alerts. I have over 500 properties that I am coming through and running my excel analysis on cash flow. So, far most of them are duds at the price advertised. One of the issue I am running into is that whereas it was real easy to find the rental income on the multi-families since they are listed in the MLS listing, it is difficult to do so for condos. I used rentometer.com a few times but have hit against the cap and they are asking me to buy a pro membership. What is the easiest way I can factor in rental income into my analysis for condos?

That's the monthly.

Thanks for your responses.

Hello all - i am just getting started out and was wondering if it makes sense getting a real estate license. Does this give any avantages in moving forward?

Regards,

Azeez

Folks. Amazing replies. And thanks for the same. I am relatively new to BP hence the bump since I did not hear from anyone and when i saw the new posts, mine went pages and pages behind. So, I thought it might get ignored. Thanks so much for stepping in and helping answer these questions. I appreciate it deeply.

I used 11% for PM. Insurance was a guess.

Hello All - Thanks in advance for any responses. In doing a cash on cash return analysis, I am trying to use normal guidelines in percentage of rent for the following categories. Can you please advise?

1. Vacancy (5%?)

2. Repairs (5%?)

3. CAPEX (5%?)

4. Property Management (11%?)

Regards,

Azeez

bump.

Well I haven't considered house hacking yet because in NJ most multiplexes can be only found in questionable areas which i would not feel comfortable living and raising my family. NJ is one of the trickier markets to invest in a) due to the absence of multiplexes in good neighborhoods and b) property taxes.