All Forum Posts by: Jeffrey Odu

Let me know if this helps.

Cash on cash: = annual cash loan / down payment

Noi ( Net operating income):  CapRate x purchase price

Annual income: all units rent x 12

Cash flow:  noi - mortgage payments

Cap Rate:  noi/sales price

Annual debt service+NOI (x3%Vacancy)

-—----———-————— =BreakEvenPoint

yeah i was thinking about flipping as well, but i also liked the idea of holding and hoping the cashflow increases overtime & refinance to gain more rental properties. My rehab estimate was for rental. I don't have experience with flipping homes, idk if the rehab would cost more then my estimate. 

i found a home 2 bed 2 bath, 960sqf, garage, for 73k that needs some cosmetic work (interior & exterior) nearby homes go for 120k-150k. I have 7500$ which is 10% of the asking price

im not sure if my calculations are accurate, but i project if i rent it out for 800$

tax: 1217 / 101$ monthly

ARV: 110,000$

Rehab: 10,000$

Monthly expenses: 731$

cashflow 61$

what I'm trying to determine is, would this property be good to hold and rent out and refinance? or would flipping it make more sense? any pros and cons, i can compare from someone who's done this?