Learn about the Net Operating Income (NOI) and Capitalization Rate (Cap Rate)—these are essential to analyzing the potential profitability of a property.Return on Investment (ROI): There are different ways to calculate ROI in real estate, such as looking at your total return after a sale or assessing your rental income versus initial investment.

I'm a Realtor with a couple properties listed in Boise, ID and a neighboring town for my investor/client that are currently rented as co-living or rent-by-the-room and getting killer income. (7.3% - 9.5% Cap rate) So far, every inquiry has been baffled by the concept of co-living or rent-by-the-room and immediately ask if they're being run as a halfway-house (which they are not).

Companies are having to set aside a certain percentage to cover the Cap Rate insurance and as an abundance of caution with these interest rates- class B are paused.

Get a good cap rate basically covers your financing and ideally 20% more for maintanance, prop management fees.

The deal itself seems like an incredible opportunity for the right buyer,  penciling at a 9 CAP. 

So, in reality every month your moving close and closer to sucking out months/years of profits via items aging out, cap-x coming to bear. 

Here are the 14 main highlights:"Just some analyst's thinking cap predictions.

My guess is that with the recent fire policy changes in CA there are likely caps on the fire payouts and many homeowners will be in the situation of example 2.

I would say the cash flow would go up every year and that would usually be the case but my son will be moving into one unit probably for just the labor to rehab the last unit (collected rent will go down for a year).After that rehab is complete, at market rent I would have about $8k/month cash flow with underwriting that most would consider conservative (for example $1200/month allocated to maintenance/cap ex). 

I use 10% for maintenance & cap ex, 8% for vacancy (but not on STR because the estimate from Airdna includes vacancy), 10% for management.