What % Cash Flow Should I Consider Reasonable?

[Casey Rondinella]

I commonly see people mention cashflow in dollar amount i.e $500 a month as a measure of how successful the property is as a producer. 

What I am looking for, is more clarification on what % cash flow relative to total purchase I should be after. Or, is there a more intelligent number should I tie this to? 

In summary, I am looking for a good cashflow % formula I can use to calculate if a properties cashflow gives me enough margin of safety + ROI in order to more properly calculate if the property is a dog or not

[Celena Lathrop]

1% is always ideal. In most markets, investors strive for 1% minimum. Advanced and picky investors will settle for no less than 2-3%. The fact is, only investors in your market can really give you a straightforward answer because each market is different. I invest in an extremely hot market where obtaining properties that even meet the 1% is extremely challenging, so I manipulate the numbers to make them work for me. If that applies to you also, you can always alter your payment rate, down payment, and so on to ensure you achieve your ideal monthly cash flow. There is no cut-and-dry answer to your question, though. Best of luck!