OfflineAfter dealing with a dangerous dog fiasco today, I managed to come up with a rather serious question. With insurance, payment and taxes aside. What do you guys consider a good cashflow? I mean, what amount makes the investment worthwhile for you?
300 a month? 200? 400?
Just looking for some input.
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I'll let others give their input as far as specifics on deals that they have done, but I would think that this is totally up to you. Cash flow meaning beyond the expenses being covered by your tenants.
What are YOU comfortable with? What fits the plans/goals that you have beyond this particular property. With that in mind, what do you need to have for cash flow out of this property NOW to help you with your future goals?
What will the "market bear"? In other words, if you set it too high you may have a problem renting the property and you won't have any cash flow at all. But, at the same time, why set it too low if you can increase your cash flow per month?
I know that's not specific and I'm sure others will help with that, but again, in my mind this is up to you based on your goals and plans.
Good luck!
M
"Make it an AWESOME day! (Who else is going to do it for you?)" - Mike Spillman
"As long as there is breath there is hope!" - Mike Spillman
I think anything $200 and over is a great cash flow. Five of those and you have $1,000 a month coming in. So there's no standard for what amount you should get, but you want to get as much as possible provided the margin's there.
God bless,
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
If your rent & expenses are low, say $600mo/rent-$400mo/expenses ($200 cash flow), you've got more margin for error than say $1500/rent-$1300/expenses ($200 cash flow). Unless you've got a portfolio of rentals where expenses are high on some but can easily be covered by others. (Am I making this complicated? lol)
I guess what I'm saying is that if 1 month of vacancy is going to cost you 6 months' cash flow, it might not be good enough cash flow. Just use good judgement.
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
The single family homes in my area rent for between $700-$1000 per month on average and I always shoot for $300 per month cashflow. I do have a couple of properties that only cashflow $50 per month but even those have someone else paying for the house, and don't forget about depreciation as an added bonus.
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!