What's a good cap rate?

Cap rates vary by market and risk level. 5–7% is typical in major metros; 8–12% is common in secondary and tertiary markets.

Should I self-manage or hire a property manager?

Property management typically costs 8–10% of monthly rent. Self-managing saves that fee but costs you time. Most investors hire a PM once they own 5+ units.

Investing strategy

Buy and Hold Real Estate

Cash flow today, appreciation tomorrow — the buy-and-hold investor's strategy.

What is buy and hold?

Buy-and-hold investors purchase rental properties to generate monthly cash flow and long-term appreciation. Returns come from rent (cash flow), loan paydown (equity), price appreciation, and tax benefits.

Key metrics

Monthly cash flow (rent minus all expenses including PITI, maintenance, vacancy, management), cap rate (NOI ÷ purchase price), and cash-on-cash return (annual cash flow ÷ cash invested).

The 1% rule

A property meets the 1% rule if monthly rent is at least 1% of purchase price ($1,500 rent on a $150,000 house). In most US markets this rule has become hard to hit — many investors now use the 0.7% or 0.8% rule as a more realistic floor.

How FlipOS helps

FlipOS supports buy-and-hold analysis with cash-flow, cap rate, and cash-on-cash calculations baked into the deal analyzer — backed by automated rent comps so your projected rents are grounded in real market data.

Run Buy and Hold deals in FlipOS

FlipOS includes a deal analyzer with buy and hold built in, plus project management, CRM, and budgets for after the deal closes.

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Frequently asked questions

What's a good cap rate?: Cap rates vary by market and risk level. 5–7% is typical in major metros; 8–12% is common in secondary and tertiary markets.
Should I self-manage or hire a property manager?: Property management typically costs 8–10% of monthly rent. Self-managing saves that fee but costs you time. Most investors hire a PM once they own 5+ units.