When scanning new listings I use quick rules of thumb. This enables me to know within 20 seconds or less whether a property has the potential to break even, or have a positive cash flow.
Is the monthly rent around 75% of the Price (divided by 100)? If this is the case, or close to it, then you likely have an income property that will cash flow. The (Boring) video’s below outline the numbers behind this quick 20 second rule of thumb.
Part 1 – Rules of Thumb
Part 2 – Taking if Further – Excel Spread sheet
Part 3 – The “Soft Science” and Summary