Cash Flowing Rental Property Still Exists!!!

[Matt McCurdy]

I'm constantly reading on BiggerPockets investors saying you need to buy rental property, break even, and hope for appreciation and/or lower rates in the future to cashflow. WRONG!!!

I'm here to tell you I'm still finding cash flowing deals in my market.

Here's an example:

Up/Down Duplex

Each Unit 2 beds 1 bath (all utilities split out & paid by tenants)

Total Rent: $1,450/mo.

$125k purchase price (20% down) @ 7.5% over 25 year term: $739

Property Taxes: $125/mo

Insurance: $175/mo (in 500 year floodplain)

Net Cashflow: $411/mo*

Obviously, I didn't include property management fees, vacancy, nor repairs/maintenance. I've found every investor treats those costs differently in their pro forma, but this gives you the idea. Is anyone seeing better cash flow in their markets?

[Alecia Loveless]

@Matt McCurdy I’m still seeing cash flow but it’s harder to come by. The markets I invest in have tightened up and there is a lot less inventory to choose from.

In previous years there would always be 2-3 multi family properties available in my areas and I’ve only seen 1 new listing for 5 months now. (It is overpriced and the Seller mistakenly believes an owner occupant will be willing to pay a premium price for it). It’s now sat on the market just shy of 160 days because the seller is being unreasonable and unrealistic.

If you can get creative in sourcing deals I think you can still find some good ones. The great ones are few and far between right now.