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Updated about 5 years ago,
How much cash flow do you want?
My investments consist of SFH and duplexes in the price range of $40-$60K. Most of the units cash flow $190-$250 per unit. Our cash position in these is 20-25%.
I've been approached about buying a huge duplex (2269 sq ft) with a single and 4 car detached garages. The price tag is significant at $210,000. When I run my numbers, based on the current rents it barely cash flows, But with the current owners increases that will go into effect Jan 1, 2020, I would be cash flowing $250 per residential unit and $100 total on the garages per month, and that is at a price of $195,000, not $210,000.
My question is does it make sense to buy this large of a property yet still get the same cash flow as my $40-$60K homes? Seems like a lot more risk for not enough gain. Or, do you see it only as how much "cash" I have in the deal vs the monthly cash flow?
Any thoughts on this would be helpful. Thanks.