Quick Investment Calculations - Posted by Clay

Posted by David Butler on April 02, 2010 at 12:31:56:

Hello Clay,

Early on, you are best advised to become well-grounded in a number of principles, and understanding their nuances - before you go looking for short-cuts. Otherwise, you are more likely to find yourself on the fast-track to losses, rather than profits.

Here’s one resource you can play around with a bit. You’ll find some brief discussion of important metrics, including rent ratios, in the second half of the report.

Priced to Own–Probabilities Producing Profits

Some other important information you’ll want to be familiar with is related to the buying concept in use for years by experienced CREI’s… “Maximum Allowable Offer” (MAO). Use that as a search term in one of the search engines here at CREOnline (main board best), and again in the Internet (where you’ll find some helpful charts and calculation examples).

Hope that helps, and Happy Hunting!

David P. Butler
Nascent Equity &
Hotspur Investment Group

Quick Investment Calculations - Posted by Clay

Posted by Clay on April 02, 2010 at 11:43:46:

Does anyone have any helpful advice on rules of thumb or
quick investment calculations to assess whether a property
is a good investment or not?

For instance, one that I have read that if you can find a
property where Gross Rents are 1% of Property Value, you
have a good deal. EX: $100k house rents for $1k/mo.

Would anyone ‘settle’ for a property yielding a minimum cash
flow/ month regardless of the rent to value ratio? Like if
a property will net 300/mo., it would be an automatic good

Any experience or personal calculations and general rules of
thumb would be greatly helpful. Thanks!!