All Forum Posts by: Ezekiel Tolentino

So I’m using the bigger pocket calculator. When I put my expense in such as 5% repair, 5% cap ex, 5%vacancy I get a positive cash flow but on the 50% rule I get negative cash flow. I’m not sure which one to follow. Am I doing something wrong?

What you're doing wrong is trying to figure out whether or not you have positive/negative CF by using percentages that have nothing to do with the specific property you are analyzing.

Try using actual numbers for expenses and rent and mortgage. You'll find something pretty amazing. The actual answer, with no confusion, no conflict, no B.S., just the actual answer, that can be understood completely. Why? It's in actual dollars. WOW!!! what a concept.

How do you find actual numbers for expense such as repairs, cap ex, and vacancy? Even rent is somewhat of an estimate based on what similar properties are renting in the area.

1 Vote

Hello, I'm using the bigger pocket calculator. I'm getting 2-3% CoC for a rental property (which I think is low) but in the 5 year annualized return it's around 14% (which sounds acceptable). What's the difference between this two numbers? How do I interpret this difference? Which number is more reliable in terms of return on my money?

1 Vote

0 Votes

All Forum Posts by: Ezekiel Tolentino

Ezekiel Tolentino has started 2 posts and replied 3 times.

Post: 50 rule vs 5-10% expense itemized expense

Post: CoC and 5 year annualized return

Post: 50 rule vs 5-10% expense itemized expense