Investor’s Frequently Asked Questions

Lower risk deals tend to have more stabilized values but produce cash flow over long terms that help meet investor cash flow goals. Appreciation and value-add deals can generate a large profit but take on more risk to attempt those objectives.

Percent of cash out of an investment in a year relative to the amount of cash invested. It does not consider time or money. It is a very commonly used metric, but not often used professionally.

You should talk to a trusted/ recommended lender to get a sense of your financial situation and what you would be able to afford.

There are many tax benefits. The easiest method is to have a rental property because you can deduct expenses such as depreciation, repairs, interest, and taxes that relate to that property.

Net Operating Income- Income after vacancy and expenses and before debt service.

The 1% rule states that your monthly rental income should = 1% of your total purchase price.

Monthly rent/ purchase price or market value.  Should be 1% or more. 

The best way to find a good deal is to use a trusted agent. If you are purchasing a property, the agent will be no cost to you and an experienced agent will know how to find the best deal.

Capitalization rate- percent of cash return in the first year if the property were purchased for cash. The ratio of NOI to purchase price.