Rental Property Investor · Anaheim, CA · Member since 2018 · 14 posts · 0 votes
Hi everyone! I'm a newbie and excited to start my real estate journey. My goal for real estate investing is purely cash flow.
I'm looking to purchase my first rental property in 2019 and was wondering if I should focus on purchasing many properties that bring me a below average cash flow or buying few properties that give me a GOOD cash flow.
I plan to buy 1 GOOD property per year but was wondering if I should focus on buying fair properties that bring an below-average cash flow. (My goal is to get at least $500 a month cash-flow on a good property, is this realistic? What are your goals for cash-flow properties?)
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
7y
@Andres Aguero I think there is some confusion when you talk quality versus quantity. Higher quality properties often generate less cash flow. Lower quality properties generally generate higher cash flow.
On BP there is this concept that more doors is better, but more doors is more tenants and more problems. I like to get more dollars per door rather than just having more doors. I also like lower expense per door, which means avoiding landlord paid utilities and finding properties with less maintenance and CAPEX.
So you can put two properties side-by-side and one may have higher cash flow, but that is only part of the story. Quality comes at a price.
Rental Property Investor · Ocala, FL · Member since 2016 · 226 posts · 140 votes
7y
I always seek middle class blue collar neighborhoods. That is the sweet spot.
You could buy properties in the "war zone", but the work to keep them in good condition and to collect rent is going to be higher. I suggest you buy nice properties that can attract nice tenants after you do some improvements to them. So many people let their homes run down, and it doesn't take a whole lot of money to get them back in good shape after you buy them right.
Life is good when you are not always having issues with tenants or property. I may not have as many "doors", but the ones I do have are on "cruise control", for the most part.