Cash flow enough??

Question

so I have come across investors that can live off their rental properties and then you some that are just happy with getting their mortgage paid off and have a little extra for repairs and maint.

Example: if you're buying $2 mil in rental units, do you expect to make money on it?  Or just happy with getting the mortgage paid off?

Sunny P. · Answer

also if one is expecting only  $200 per month per unit then you gotta have like 100 units to quit your day job and make maybe $20,000 a month before taxes.

How are folks living off their rentals??

Sunny P. · Answer

can someone explain capex a little more?  Capital improvements down the road?

Chris Virgil-Stone · Answer

I agree with @Bud Dwyer and @Walter Key. It depends on the end goal. While I would NEVER  depend on appreciation only, and therefore not only cover mortgage, opex and misc exp. I don't consider anything less than $200/door...I will say I have recently moved from a small city in northern NY to just south of Atlanta, GA and markets are totally different. I can't expect the cash flow of $300+ per door I was getting (doing maintenance myself). You need to learn what is capable in your market which can take time.

Bud Dwyer · Answer

If your goal is appreciation I guess just having it paid off is OK.  You would need to factor in repairs and CapEx though.  Me personally, I like to see at least $250/door.  In my area that is reasonable if you buy in low income areas.  My goal though, is to not have to work overtime.  It depends on what your investment strategy and motivations are.

Walter Key · Answer

This could be answered many different ways by many different investors because everyone has different goals and objectives. For me, I like to see at least $150/MO cash flow per door for any buy and hold investment. Some will say $200/MO is the minimum you should shoot for but I'm OK with $150. Different strokes for different folks I guess.