Analysing

[adm]

Hi all!

After running some numbers on a property that is currently on the market, I’m wondering do you all have specific numbers that you’d like a property to hit?

- Monthly cash flow (after all bills)
- CoC return
- ROI

And any other metrics that you like to use.

And if anyone would be kind enough to use their purchasing/current numbers that would be very interesting and much appreciated.

Thanks all!

[Jeffa]

Easiest calculation I find and a relatively safe number is use 30% of rent to cover PM fees, insurance,rates and a minor annual maintenance...the rest should cover your mortgage and a don't forget a good accountant.



If you're new to investing thats a good number and with low interest rates it should steady the ship more.

As you become more experienced and increase your capital you can drop that to 20% on future property,time will build not just wealth but a safety net aswell.

[Jeffa]

Property investment is exactly the same as starting a new business, and like most businesses they fail in the first 2 years.

Like any business it takes time to make a profit,and if you are lucky enough to hit the jackpot in a short amount of time this will most likely set you up to fail on future investments .

We are in the perfect environment to purchase property that actually pay for themselves with record low interest rates.

You may have 3 or 4 years of low interest rates which should be enough time to find ways to increase rents with improvements, capital growth and treat each property like a separate business.

Ignore the media and comments, stick to your numbers and your goals.

[adm]

Property investment is exactly the same as starting a new business, and like most businesses they fail in the first 2 years.

Like any business it takes time to make a profit,and if you are lucky enough to hit the jackpot in a short amount of time this will most likely set you up to fail on future investments .

We are in the perfect environment to purchase property that actually pay for themselves with record low interest rates.

You may have 3 or 4 years of low interest rates which should be enough time to find ways to increase rents with improvements, capital growth and treat each property like a separate business.

Ignore the media and comments, stick to your numbers and your goals.

Thanks for the information Jeffa! Appreciated as always!