All Topics / The Treasure Chest / +ve Cashflow pty CALCULATIONS PAGE

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  • Profile photo of LeighLeigh
    Member
    @leigh
    Join Date: 2003
    Post Count: 130

    Hi,

    Just a small addition.

    An easy way to get the same result as the 11sec rule (10% return) is to drop the ‘000 and x 2 to find out the desired rental return.

    Example:
    Property value = $60,000
    Drop the ‘000 = $60
    x 2 = $120 weekly rent for a 10% return.

    If you’re good with numbers you should be able to see the picture without thought.

    $35k = $70/week
    $50k = $100/week
    $75k = $150/week
    $162k = $324/week

    Working backwards – halve the rent and add the ‘000.

    $120/week = $60,000
    $50/week = $25,000
    $182/week = $91k
    $200/week = $100k


    “If you can count your money, you don’t have a billion dollars”
    J. Paul Getty


    Profile photo of hwd007hwd007
    Member
    @hwd007
    Join Date: 2002
    Post Count: 247

    Hmm property value / 10 to get rent ? hope this is not the only measure of cash + but granted you did mention I think for properties under $100K

    Imagine a $300K property / 10 = $30,000 in rent, yipeeeeeeeeee !!

    Profile photo of LeighLeigh
    Member
    @leigh
    Join Date: 2003
    Post Count: 130

    hwd007 – a.k.a ‘The Devils Advocate’,

    Do you have to have a go at everything? There were people in this post asking for basic assistance in judging a property for cashflow at a glance. There have been several people offer assistance and you seem to always come back with an obvious what if and poke holes in the assistance they’ve offered?

    quote:


    Hmm property value / 10 to get rent ? hope this is not the only measure of cash +


    Yeah I’d hope not either. And having read previous posts in the thread you might have found a few.


    “If you can count your money, you don’t have a billion dollars”
    J. Paul Getty


Viewing 3 posts - 21 through 23 (of 23 total)

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