Minimum estimated cashflow

[Nathan Churchill]

Hello! I've begun my real estate investor journey and am currently working on my property analysis technique/skills. My aim is to analyze 1-2 properties a day.

When you do analysis, you get an estimated cashflow. I'm curious what some of your minimums are for knowing when to proceed with looking at the property? For me, I'm looking in the 90-120k range and my absolute minimum is $200/month positive cashflow (this includes management, although I plan to self-manage my first few properties). I also look for a minimum of 8% CoC return.

In my market there's not a lot of appreciation (maybe 1-2% annually, if that), so I'm looking at cashflow and loan paydown as being the primary wealth generators. We're in the middle of a huge seller's market right now, so the MLS deals are sparse. Ideally, I'm going to wait until it's more of a buyers market to try to find better deals, but for now $200/month is my trigger to go look at the property. What about you?

[Antoine Martel]

8% CoCR is not good at all. You might as well save yourself the headache and put that $ into a mutual fund which will get you 6-8%, you should be looking for deals with 15% CoCR. $200/mo without paying your self for being a property manager is not a good deal!