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Ken Lam Realty · Tools

Which rental is the better buy?

Put 2 or 3 rentals side by side. Price, units, rent, expenses. See NOI, cap rate, cash flow and DSCR next to each other, live.

What matters more to you?
How many to compare
Loan and vacancy (same for all)
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Best for cash flow
A

Expenses marked "estimate" use: property tax 1.25% of price, insurance 0.35% of price, repairs 5%, CapEx 5% and management 8% of collected rent. Owner-paid utilities and HOA are not included. Type your real numbers if you have them.

Good / OK / weak cutoffs are rules of thumb, same as T146. Bay Area cap rates are often low because prices are high.

Ask Ken Watch 15-sec video

Email this comparison to yourself

Ken will reply and can pull real rent rolls and comps for these buildings. No spam.

Or text: 408-666-2825

Next steps

  1. Take the winner to T146 and type every expense line, plus a 5-year IRR.
  2. Under contract? Use the multifamily due diligence checklist in T267: rent roll, estoppels, SB 721, soft-story.
  3. Check the rents you typed against HUD fair market rents in T51.
  4. How fast can rent go up? AB 1482 and city rules in T55.

Many people get this wrong: "Higher cap rate means better deal." Not always. A 5.5% cap in an older building with no SB 721 report and a soft-story retrofit coming can cost more than a 4.5% cap that's already done. Compare after you price in the big repairs.