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Updated over 17 years ago on . Most recent reply

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How much cashflow is the bare min for a deal to be worth it?

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Posted

Hi all,

I was wondering if there is any generic formula you plug in your investments to see whether they are worth the return? I am assuming you would compare everything to a risk-free type investment like a CD or Savings Account and additionally maybe something like a mutual index fund for your analysis.

For me, I believe I would normally pay somewhere between 700-900 on rent not including utilities. I mention this because cost of living varies from city to city.

Given that, on a property that was purchased for 157k, how much cash flow do I need to make it a good investment? I also plan to spend approximately 5k in repairs so I guess the total cost to me is 162k.

I didn't get into the specifics of the property detail because I'm not sure if it matters what type of property it is. The analysis should be purely based on hard numbers right?

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