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Updated over 9 years ago,
Positive Cash Flow Criteria on Buy and Hold
Hi All...for those who Buy and Hold Multi-Unit properties for positive Cash Flow, what process do you use to determine your minimum acceptable Total Annual Net Cash Flow per purchase?
I've heard several people say they need to net no less than $200/door but if you're talking about a duplex that's only $400/mth or $4800/yr versuss say a 30 unit complex where the same $200/door equates to $6000/mth or $72,000/yr. For some the $4800 duplex would be great, for others $50K or better is the minimum acceptable, so they'd only consider the 30 unit complex.
To be clear, I am not asking how to calculate CF, but I would like to understand what are some things to take into consideration when determining Annual CF criteria that make an investment worth your time and effort to pursue?