25 RULES OF THUMB FOR MULTIFAMILY REAL ESTATE INVESTORS

This book lays out our guidelines and parameters for a good deal. Here we discuss cap rates and cash on cash returns that we strive for. It is vital for beginning investors to learn how to correctly analyze a deal.

Here's What You Will Learn

What formulas should I use? You will be able to analyze a deal quicker and more accurately using our Rules of Thumb. What are some of our rules?

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  • Cap Rates: What is a cap rate, and how do investors use them?
  • Cash on Cash Return: What is our return that we strive for? (hint: 10%) 
  • Debt Coverage Ratio: What ratio does a bank look for when deciding whether to provide financing? 
  • Management Fees: What are the going rates to manage a property