ilmscore | The Real Estate Cash Flow Formula (Everyone Gets This Wrong)

The Real Estate Cash Flow Formula (Everyone Gets This Wrong)

Published: 2024-10-10
Status: Analyzed

Predictions from this Video

Total: 3
Correct: 0
Incorrect: 0
Pending: 3
Prediction
Topic
Status
In the market as of October 2024, long-term real estate properties in good condition and good neighborhoods are predicted to yield 3-6% cash on cash return, with over 6% being an exceptional deal.
"if I can find a property a long-term property that's in good condition and it's in a good neighborhood with a 3 to 6% cash onh return using all of the above calculations I think that's a pretty good deal if you're over 6% I think that is a killer deal in today's day and age so 3 to 6% if it's good neighborhood and a good quality property"
Real Estate Investment Returns
Pending
In the market as of October 2024, real estate properties in medium-desirability neighborhoods are predicted to yield 6-8% cash on cash return, while those in undesirable or risky neighborhoods are predicted to yield over 8%, sometimes over 10%.
"if it's in a medium neighborhood I'd probably want it to be in the 6 to 8% range for cash on cash return then if it's in a really undesirable neighborhood it's a really risky deal in some way that it would have to be higher than 8% sometimes it would have to be higher than 10%"
Real Estate Investment Returns (Risk Adjusted)
Pending
Real estate investments, when analyzed conservatively (e.g., 3-4% cash on cash return worst-case), are predicted to perform better than initial projections and see their cash on cash return grow over time due to increasing rents and fixed debt.
"very likely I'll do better than that and it will likely grow over time as rents grow and my debt stays fixed"
Real Estate Investment Performance Growth
Pending