Recommendations for maximum cash flow ??

[Noel Volin]

Hi folks! Twin cities area resident looking to delve into more real estate deals. Our goal is to work towards income replacement for my wife and I. As a result, we'd like to find properties that will provide us with ~$1000/month in cash flow. I've heard Brandon talk about his properties that cash flow like this on during his podcasts. Are there others (i.e., regular folk) who are cash flowing properties at these levels as well? Any recommendations on the best type of property (i.e., duplex, multifamily, SFH) to reach this goal?

Also interested in meeting with other similar locals on the east metro side of Twin Cities. Seems like all the REI groups are West Side :(

Thanks for reading/responding!

Noel

[Amber Gonion]

Hi Noel, we work with investors and find that right now the the market is pretty tight from 500k-2 million range. Cap rates range from 10% in areas with shootings to 4% for class “A” buildings.
Because of this we have adapted, we are going where the profits are by finding smaller properties in areas and then targeting these same areas for more purchases. The smaller purchases are more work for us as realtors, but they provide effective cash flow and are easier for our investors to unload if they need some cash. We don’t even bother our clients with properties that are not doing 10% cash on cash return, most are at the 15-20% range.

I say this because it is frustrating when clients are not flexible and only want 5-10 unit properties and are not willing to make money in smaller units despite the fact the market is tight right now in the 5-10 unit range.