Single Family Rentals and Cash Flow

[Lisa Henrich]

What is the best method for finding single family rentals that cash flow? And, what is an acceptable cash flow for a SFH? $100/mo? $200/mo?

[Ali Boone]

It completely depends on the market and the type of property. Different markets have different standards for what a typical cash flow would be (and you'll want to know that so you know if you are buying well!). Also, for me an acceptable cash flow depends on the risk trade-off of what I'm getting into. If I'm going for a higher-risk property, there better be some higher cash flow projected on it to make up for that risk I'm taking on. I won't buy a high-risk property with minimal cash flow. If I'm buying a low risk property, like a nice one in a nice location with quality tenants and good potential for appreciation, then I'll go down possibly to $100-200/month cash flow. Otherwise, I want no less than $200/month if not more. So it all depends, and varies.

As far as how to find a property, it depends on what kind of property you are trying to find. If you want a fixer-upper, wholesalers are good to work through. If you want a turnkey, you can go through agents who can show you ready houses or turnkey providers.