Cash Flow Per Door Expectations

[Kevin Sack]

I am actively seeking my first multifamily deal in the Hampton Roads, VA area. Am I off base for trying to get $150/door net cash flow on a quad that rents 700/month? That tends to put me at 80-85% of most asking prices with all my expenses and 20% down conventional financing.

Kevin

[Ernest Grindle]

@Kevin Sack For example your purchase price impacts your down payment which will be a major factor in your cash on cash return which gives you the relative value of that monthly cash flow to you. Also depending on the neighborhood you are buying in you could have years of cash flow wiped away every tenant turn over. Since it looks like you are planning to hire a property manager, reach out to @Patti Robertson She has an excellent property management company and knows every neighborhood in Hampton Roads and could tell you what to expect.