Advice Needed - What would you consider good net cash flow?

[Christopher Golden]

Hey everyone,

I have been digging around here for a few months now and am extremely greatful for the amount of information available. I am looking to start investing in rental properties, both single family and small multi's, using the BRRRR method. I live in New Hampshire and am looking for some advice from people much more knowledgeable than I am.

I have been looking for my first property and have come across what I believe is a few deals that seem to look good. The prices reflect condition, the rehab costs have been manageable, and the ARV's that I have come up with are on par with the market, i think. I am no expert, but I can make reasonable comparisons on properties. So, on paper, I have found a few properties that I estimate to cash flow between $100 and $300 net a month. This, of course being very generous with maintenance and management costs.

  My question is, when I'm analyzing properties, what should I be seeing for cash flow on a single family, or a multi, after all expenses, that make it a good deal?  I hear people mention $100 - $200 per unit is good cash flow.  Should I see different numbers on single family versus multi family?  

I'm really interested in hearing everyone's ideas and opinions on what constitutes good cash flow?  Thanks in advance!

[John Leavelle]

Howdy @Christopher Golden

LIke @Brian Garrett I target $200 per unit for Cash Flow. However, you will find it more difficult when using the BRRRR strategy. This is mainly because of the increased mortgage payment due to the larger amount for the Refinance loan. In that regard I will accept a minimum of $100 per unit. Nothing less.

The CCR @Ryan D. refers to is the big advantage of the BRRRR strategy. If you can achieve the ultimate goal of 100% cash back then your CCR becomes infinite. Way better than 10% - 20% CCR.

You must make a choice sometimes to compromise between getting 100% cash out or leaving some in the property to meet your minimum Cash Flow criteria.  In the perfect scenario I would want 100% cash back and a minimum of $200 per unit Cash Flow.  But, 90% and $100 per unit will work for me too.