Taking into consideration the number of months or years, calculate the length of time it will take you to recover the cash injected into the property including deposit, purchase costs, refurbishment etc. Keep your cash flow forecast positive yet realistic.
Question 8When calculating the net yield, anything less than 4% will prove cash flow to be minimal and not worth investing in for rental purposes.
The answers to the previous questions will need evaluating in detail. A positive or negative picture will form to help you decide whether the property is worth the investment.