It seems like I need to check further away from the DMV area.My feelings are if you want “cash flow” you should buy a bond (I really like the tips rate right now) there is next to no reason to buy real estate for cash flow, if you are going to buy you should buy with appreciation in mind, which is not to say that’s the route I’d go, I’ve been liquidating properties to put in stocks and money market funds over the last few years and u just did the math and I’ve come out well ahead, but just to say there are arguments for stocks/bonds, there are arguments for levered appreciation, but the cap rates pretty much anywhere aren’t worth it vs an inflation protected bond, especially since a 3/rd of inflation is real estate anywhere, you could get “cash flow” and inflation protection much easier through a tips.

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 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). 

You can get 10% or better net caps in the US, all 100% hands off.  

The cash flow is only 5k/month (not including cap ex, maintenance and vacancies), but it’s enough to pay for my kids in college.

Most lenders are capped at 75% LTV on a cash out refinance, so something to think about while you do the math.

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

So if prop 33 passes it will be possible to cap rent increases from one tenant to the next.A recipe for blight.  

I tend to use 8% for vacancy, 5-10% for repairs depending on the condition of the property, and 7-9% for cap ex.

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.