Kansas City Reasonable Cash Flow and CoC ROI

[Michael Holmes]

Hey All - I'm in the process of looking for "great deals" but having a hard time coming up with anything that meets my minimum cash flow and cash on cash ROI expectations. Ideally I'd like to see $200 cash flow and 12% or greater CoC ROI. I've run the analysis on just under 50 multi-family properties and none seem to meet this criteria. In my analysis I'm also using the following estimates for expenses:

- Vacancy 5%

- Maintenance and Repairs 5%

- Cap Ex 5%

- Property Management 10%

- Future Sale 8%

- Insurance $100

What are others finding in the Kansas City and surrounding market?

[Mike D'Arrigo]

@Michael Holmes I'm assuming your talking about the Kansas City market. If that's the case, your assumptions are very realistic--probably on the low side for multi family. I don't know what the 8% future sale expense is however. If you're referring to commission and closing costs at sale in the future, that is a one time cost that would not be included in your ongoing cash flow analysis.