Deal Criteria Too Stringent?

[Matt Stevi]

Hey all,

New to the real estate investing world as of a couple of months ago. Quick question about my criteria when analyzing deals.

I like to be SUPER conservative when running the numbers on a deal and so I've taken it so far as to factor in 10% of the rent EACH when accounting for vacancy, repair, CapEx, and property management. So, for example: say rent is $1000, I'd be setting aside $100 each for all 4 of those categories ($400 total, not including the mortgage payment, property taxes, insurance, any utilities, etc.)

Is it possible to find a property that will still cash flow and have a good cash on cash return (like 8%+)? I'm asking because I haven't found one yet using this criteria, so now I'm starting to think I should be a little more lenient with my numbers.

Thanks for your help!

Matt