The only chance of finding positive cash flow is...

[Joe Edwards-Hoff]

I'm only a couple weeks into researching real estate. Well, I actually own a home and rent it, but that is besides the point. I'm just trying recover an unwise past investment. Hopefully my current refinancing goes through and I won't be paying the difference anymore. (Renting to good friends though, and I still have use of the premesis and my 1k sqft shop.)

Anyway, I got started listing to Rich Dad Poor Dad, and other things they do. I am almost done with 16 hours of Bob Allen lectures. I've heard good and bad about both, but what's important is that I got inspired by these audiobooks and now I am doing my down to earth research.

It seems like both Bob and Bob (Kiyosaki and Allen) quoted that if the yearly gross rent was 10% of the purchase price, it was a good deal. At one point someone even mentioned monthly being 1%. Now, on here I am seeing 2% for monthly, and then 50% (40-50) being the expenses. That is obviously a different picture than what they paint. Which I'm sure, sadly, a few people on here probably learned the hard way.

So, if we use those realistic numbers, you really need to have a good LTV ratio if you want positive cashflow. And that is what I currently think I want.

So what options does that leave you with? I guess the main purpose of this post was to figure out what I would need to be looking for if I wanted positive cash flow. Preforeclosures? Maybe REOs. Maybe get lucky with a FSBO. If there are any other avenues for acquiring properties with a LTV I could profit off of, please let me know.