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All Forum Posts by: Jay Fayz

Jay Fayz has started 0 posts and replied 2 times.

Post: How Much Should A Rental Property Cashflow?

Jay FayzPosted
  • Investor
  • Maryland
  • Posts 2
  • Votes 0

Thank you for the response @Jaycee Greene

Post: How Much Should A Rental Property Cashflow?

Jay FayzPosted
  • Investor
  • Maryland
  • Posts 2
  • Votes 0
Quote from @Jaycee Greene:

Hey @Hector Espinosa! I see your purchase cap rate is over 10%, so I would suspect it's in a class C/D neighborhood. FWIW, I think your operating expenses might be high, but it's hard to say for sure without more details.


 Hi Jaycee. Im kinda knew to this and was doing some research. If you can please explain how you got the cap rate over 10%. From what i see you dived the annual income ($3,731) from the purchase price ($98,000) which would be 3.8%. Also is a higher cap rate directly correlated to a lower class neighborhood? Thanks