Minimum Rental Cash Flow

[Braden Downs]

What is the minimum amount of cash flow (after expenses) you look for when purchasing a house and how accurate has the 50% rule been for you? Also, what did your very first rental property flow, and would you buy it again? I'm based in the Midwest and curious about C+ properties or higher.

[Todd Fithian]

@Braden Downs Hey Braden. I tend to try and follow what Brandon turner teaches, which is $100 per door minimum plus a 12% cash on cash return. $100 is pretty low per door so obviously the more the merrier, but in this hot market, especially where I am, it's pretty hard finding even $100 per door unless you find off market deals. My first purchase was a duplex and it cash flows after aaallll expenses about $300 a month, or $150 per door. Good thing about my location though is the how well the property appreciates.