eGuide: Analyzing a Long Term Rental

In this guide, I'll help you think through your long-term rental (LTR) buying criteria. You’ll learn how to estimate market rents and operating expenses. Then, we’ll calculate net operating income (NOI), capitalization rate (cap rate), cash flow, cash-on-cash return (COCR), and the debt service coverage ratio (DSCR). (Excel file included.) We’ll cover targets for these metrics. By the time we're done, the metrics and numbers used by real estate professionals will no longer be a mystery to you.