New to Real Estate 路 Overland Park, KS 路 Member since 2019 路 11 posts 路 3 votes
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?
Turn key provider 路 San Jose, CA 路 Member since 2010 路 4k+ posts 路 3k+ votes
6y
@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.
Turn key provider 路 San Jose, CA 路 Member since 2010 路 4k+ posts 路 3k+ votes
6y
@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.
New to Real Estate 路 Overland Park, KS 路 Member since 2019 路 11 posts 路 3 votes
6y
Thanks @Mike D'Arrigo! I'm using the rental property calculator on this site and it's just one of the inputs. To your point however it doesn't seem to impact the monthly cash flow number and only impacts the "profit if sold" metric.