NOI, cap rate, cash-on-cash return, the 1% and 50% rules, CapEx budgeting, and how to read rent rolls and T-12 statements before you buy.
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Start with NOI. Every other metric on this hub, and every valuation an appraiser produces, is built on it.
Deal AnalysisThe four real channels for off-market 2-4 unit deals, what each costs in money and time, the realistic discount from each, the specific risks of buying from wholesalers, and a repeatable system for building deal flow without chasing fantasies.
Deal AnalysisA step-by-step audit of the two documents sellers give serious buyers: verifying the rent roll against leases, the line-by-line T-12 check, the five adjustments that reveal true NOI, a worked example with a 30% haircut, and the exact document list to request.
Deal AnalysisCapEx reserve planning for older 2-4 unit buildings: repair versus capital classification, component lifespans and replacement costs, percentage, per-unit, and component-based reserve methods, a $49,000 reserve study on a 1920s duplex, and the pre-offer inspection checklist.
Deal AnalysisWhat the 1% rule and 50% rule actually measure, how to use them together to sort listings fast, the specific building types where each rule fails badly, and a worked example where the shortcuts and the real numbers disagree by 24%.
Deal AnalysisCap rate measures the building; cash-on-cash measures your deal. Formulas, a fourplex worked at four leverage levels showing negative leverage in action, rules of thumb for 2-4 unit properties, and a decision table for which metric answers which question.
Deal AnalysisThe complete NOI formula for 2-4 unit rentals: gross scheduled income, vacancy, every operating expense line, what never belongs in NOI, a $450,000 duplex worked step by step, and how NOI drives value, lending, and deal comparison.