Hi there,
Can anyone explain how I calculate a properties rental yield??
Also at what percentage do I assume a property is cash flow positive.
Eg. is a rental yield of 8% positve or is it 10%.Rgards
[cowboy2]
Rental Yield is calculated yearly rent/purchase price
Rule of thumb is you need 10.4% (weekly rent is 2x purchase price/1000) for positive cashflow.
You will not find many properties that you can buy for positive cashflow these days. Some comercial properties may be, but only because the lease is about to run out or it is a periodic lease.
To create positive cashflow in a property you will have to be creative (renovate, subdivide, find good commercial tenant, etc.)
It is hard work but rewarding. Good luck
Thanks Bridgebuff
Just looking for a quick calculation to filter potential properties.[strum]
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