I note the COC formula in Steve’s book does not seem to take account of equity take up as part of the return, despite the fact that total repayments (P & I) are included in costs.
Comments anyone? Maybe Steve can respond.
Cheers
PunterHi,
It’s very simple… focus on the cash and not the profit.
As an investor I want to know how much in for how much back. ROI is based on profit which can be manipulated, cashflow is cashflow.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi, I am new! I just bought Steve’s book “from 0-130 properties in 3.5 years” last Thursday, and finished reading over the weekend. I have question about CoCR as well.
If I don’t have cash deposit, but borrow 110% from bank to invest, does this CoCR serve any purpose??
If not, does it mean as long as the property passed 11second filter, I am safe for saying I am geeting the possitive property??
Thanks for anyone help on this.
Sally
Sally
If your rental income exceeds all expenses (inc. interest, rates, land tax etc.) then you have a CF+ property. It’s not just based on the 11 sec rule, as there are other expenses which may vary.
You would not have a COCR calculation as you have put no cash in!
Cheers
Mel
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