The Two Essential Numbers for Real Estate Investing

Hey guys, hope you're doing well. This is Cody, and today's short video is all about the two most important figures you must know that'll allow you to analyze any buy-and-hold real estate deal that you come across. So with that, the number one most important figure you must know for a buy-and-hold real estate investment is what's called NOI, your net operating income. Your net operating income is the amount of money you have after paying your property expenses and to pay for your mortgage and pay yourself in terms of cash flow. The second most important figure that you must know is your debt. If you're gonna use debt, which is a tool that allows you to get ahead in life if you use it correctly, how much does your mortgage cost? How much does it cost to take out debt? And does the net operating income, the amount of money you make every single year, allow you to pay for that? Because if it doesn't, it's probably not a good deal. We want to be in a cash flow positive position that allows us to live the lifestyle we want to live. And so those are the two figures that you must know in order to analyze deals. Tomorrow's video I'm going to be posting is all about how I analyze deals for cash flow, appreciation, depreciation, and debt reduction, the four key metrics of real estate investing. And with that, I'll see you guys tomorrow. If you like what you see and want to follow along, please subscribe. Let me know your thoughts in the comments below, and I'll see you tomorrow.