How do you know a rental property is a good deal in 30 seconds?
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- Publish Date:
- August 13, 2023
- Category:
- MultiFamily Investing
- Video License
- Standard License
- Imported From:
- Youtube
Cap Rate minus interest rate = yield spread. This simple rule of thumb to test an investment property’s cash flow compares net operating income to cost of funds. A 4% rate spread in a fundamentally high quality, stable investment property should produce healthy cash flow.
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