$100 Cashflow, 3-5% COCROI worth it?

[Paulina L.]

Hi all, I'd like to make my first RE purchase. I'm looking at a market that feels promising - steadily increase in population YoY, job growth is strong, diverse job types are increasing, and new activities are popping up. However, I want to buy a multi-family home in this location, which is possible. However, with my analysis I am only seeing around $100-$150 cashflow in the area which makes my COCROI around 3-5% max. In looking at the YoY increase for both house prices and rent, it looks steady and strong. I wonder if this is a scenario where it is still good to purchase, hold (which is what I plan to do), and over the next few years it will likely steadily increase my CF. Would love to hear advice on this. 

[Joe Villeneuve]

Too many assumptions.  Basing any investment on future events you have no control over isn't investing...it's speculating.