All Forum Posts by: Nick McBride

Hello,

I am starting my quest into investing and renting multi-family units. I wanted to get your opinion on expenditures. I know I need to compensate for electric, water/sewer, property tax, garbage, vacancy %, repairs/maintenance %, and capital expenditures. I am incorporating these when I am evaluating deals. What other expenditures should I include when evaluating if a deal will give me good cash flow and cash on cash return?

Thanks,

Nick

Question.....What is the difference between GRM and COC. And when would you use one metric over the other when analyzing a residential property?

Thanks!

I am looking into 2-4 unit multi-family

Thanks everyone for their input! To add to the comments with another question.... I have read that GRM and cash-on-cash return are good metrics to analyze residential properties. What is the difference between GRM and CoC return, and where would you use one metric vs the other?

Question.... I have read CAP rates are not best for analyzing residential properties, and are better for commerical. Is that correct, and if so, why?

I am looking into multi-family properties