I know the answer is likely going to be "it depends", but how would you evaluate the following property:
- Net cash-flow of $4,000 / month (gross revenue minus property tax, condo fees + utilities etc)
- An average appreciation in the area for the past 5 years of 5-8%
What would you pay for such a property assuming you had the cash?
A few people I've asked say "it depends" but can't really articulate the formulas or factors that it depends on.
Any advice or general rules of thumb is much appreciated.
Thanks!
- Net cash-flow of $4,000 / month (gross revenue minus property tax, condo fees + utilities etc)
- An average appreciation in the area for the past 5 years of 5-8%
What would you pay for such a property assuming you had the cash?
A few people I've asked say "it depends" but can't really articulate the formulas or factors that it depends on.
Any advice or general rules of thumb is much appreciated.
Thanks!