Posted by camgere on November 09, 2009 at 08:37:32:
In Reply to: Re: Duplex - is it worth it? posted by jak on November 08, 2009 at 23:52:50:
These numbers seem too good for California. Let's say your total monthly epenses are $585. I've allowed a 10% vacancy rate. Your CAP rate is 12.25%. Your ROI is 25%. These are excellent! Usually you compare CAP to Loan Rate or Annual Loan Payment/Starting Loan Balance. I refer to the latter as loan constant or X in my YouTube videos. Feel free to calculate your own CAP rate:
http://www.youtube.com/user/camgere#p/u/9/dyWgM-L4G04
http://www.youtube.com/user/camgere#p/u/11/_Ov__OR_mjU