Example Purchase: $1MDown Payment: $300K (30% average)Debt: $700,000Units: 12Cost per door: $83kRents: $1,000 per door (GOI = $12,000 per month x12 = $144,000) NOI: $144,000 - $72,000 (50% for expenses is what I'm hearing) NOI = $72,000Cap rate: NOI $72,000 / Price $1M = 7.2 cap Let's say this is a value add opportunity and you're able to increase the rents by $200 per unit.

Example Purchase: $1MDown Payment: $300K (30% average)Debt: $700,000Units: 12Cost per door: $83kRents: $1,000 per door (GOI = $12,000 per month x12 = $144,000) NOI: $144,000 - $72,000 (50% for expenses is what I'm hearing) NOI = $72,000Cap rate: NOI $72,000 / Price $1M = 7.2 cap Let's say this is a value add opportunity and you're able to increase the rents by $200 per unit.

Example Purchase: $1MDown Payment: $300K (30% average)Debt: $700,000Units: 12Cost per door: $83kRents: $1,000 per door (GOI = $12,000 per month x12 = $144,000) NOI: $144,000 - $72,000 (50% for expenses is what I'm hearing) NOI = $72,000Cap rate: NOI $72,000 / Price $1M = 7.2 cap Let's say this is a value add opportunity and you're able to increase the rents by $200 per unit.

Approx. 2024 sqft. 2 bed 1 bath each unit. water is not sub-metered.I found that rent was on average $850.

Take your annual income 2019 2020 plus year to date commissions for selling cars and divide by 34 =the average.

We are concerned about overpaying due to the recent run up in prices and the strategy to mitigate that risk is to dollar cost average into the market.   

Prior to reading this book, I'd simply use the "% of rents" strategy, which I always found to be a little inaccurate because it's based on averages, and what rental property is "average", right? 

At any one time we have 20-30 notes on the books, with an average loan size of $1.4 million.If I dealt in residential owner occupied I’d use a note servicer to make sure I stayed compliant with the SAFE Act and the CFPB

@Joseph Romano yea I would estimate vacancy above average. 15% sounds pretty safe.

As seen in the report, I am charging utility outside of water and garbage to the tenants and about a 7% average for vacancy, maintenance and cap X with a 25 allocation each month as extra.