How does plugging in a propertie's estimated market monthly rent establish the baseline for cash flow at a particular sales price? You seem to be using circular reasoning here.
@michaeljohnson2470 I wasn't very clear in the video. At 127 that property was at a 7.5% cap rate. I ran those numbers to verify the figures but didn't show that in the video. Oops. So if you use the 127 multiplier the property in theory would cash flow, bur you still need to verify. It just reduces the number of properties you have to run full numbers on.
@CraigKammanMN Thanks Craig, yes I would be interested in joining. I am a residential remodeling contractor just to let you know a little bit about myself.
Thanks Craig!
How does plugging in a propertie's estimated market monthly rent establish the baseline for cash flow at a particular sales price? You seem to be using circular reasoning here.
@michaeljohnson2470 I wasn't very clear in the video. At 127 that property was at a 7.5% cap rate. I ran those numbers to verify the figures but didn't show that in the video. Oops. So if you use the 127 multiplier the property in theory would cash flow, bur you still need to verify. It just reduces the number of properties you have to run full numbers on.
@CraigKammanMN Thanks for the explanation! I am also in the Twin Cities, so it was nice to find your channel.
@michaeljohnson2470 cool. There are a few of us that get together once in awhile locally if you ever have interest.
@CraigKammanMN Thanks Craig, yes I would be interested in joining. I am a residential remodeling contractor just to let you know a little bit about myself.
Good work 💪