What is good cashflow for you?

[Angie Castro]

Hello! I would love to get an overall idea of what they consider a "good" cashflow. Many people with a broad buy boxes tell me that they want "anything that cashflows good" but when I ask what is good cashflow they struggle to put it into words. It's a very subjective question because $300 cashflow in a $250k sounds pretty good but what about $300 on a $600k house? 

[Jim Kittridge]

Most investors want a +10% cash on cash return after accounting for all expenses & reserves such as:

Vacancy
Maintenance
Capital Expenses
Property Management
Taxes
Insurance
HOA
Lawn/Pest
Utilities

The sum of those end up being 35-45% of gross rent for most rental properties, but you should adjust for your area, rents, and costs.