⚡️ Don’t waste time on bad deals! Here’s how to run the numbers like a pro in just 5 minutes.
📌 Step 1: Find the NOI (Net Operating Income)
👉 NOI = Gross Rental Income – Operating Expenses
This is your property’s TRUE income before financing. The higher, the better.
📌 Step 2: Calculate the CAP Rate (Capitalization Rate)
👉 CAP Rate = NOI / Purchase Price
This tells you how profitable the property is. Compare it to market averages to see if it’s a good deal.
📌 Step 3: Run the Cash-on-Cash Return
👉 (Annual Cash Flow ÷ Total Cash Invested) x 100
This is your actual return on investment after financing. Aim for 8% or higher!
🔍 Pro Tip: If the numbers don’t work, walk away. The deal of the decade comes once a week in CRE—don't rush!
💬 What cap rate do you aim to buy at? Drop a 🔥 in the comments!
📌 Want to master deal analysis?
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