“You don't have to be a mathematician to have a feel for numbers.” - John Nash
Whether you are already operating a rental property or looking to invest in one, you need to know what your property’s cash flow potential is. Three key figures to look at to assess your current cash flow are your property’s Cap Rate, Cash on Cash Return on Investment (CoC ROI) and the Debt to Cash Ratio (DCR).
We are going to take the example of a traditional 1 bedroom apartment rental property in Lakeside Tower C in IMPZ, Dubai. We will go through the process of generating these metrics step by step so you can easily repeat the same calculation for your property of interest.
A little bit about our sample investment: