Cash Flowing Rental Property Still Exists!!!

[Matt McCurdy]

I'm constantly reading on BiggerPockets investors saying you need to buy rental property, break even, and hope for appreciation and/or lower rates in the future to cashflow. WRONG!!!

I'm here to tell you can still find cash flowing properties in my market (Cedar Rapids, Iowa), although a bit harder than it has been, but if you have the right agent to uncover deals they are out there.

Here's an example that is for sale now:

Up/Down Duplex

Each Unit 2 beds 1 bath (all utilities split out & paid by tenants)

Total Rent: $1,450/mo.

$125k purchase price (20% down) @ 7.5% over 25 year term: $739

Property Taxes: $125/mo

Insurance: $175/mo (in 500 year floodplain)

Net Cashflow: $411/mo*

Obviously, I didn't include property management fees, vacancy, nor repairs/maintenance. I've found every investor treats those costs differently in their pro forma, but this gives you the idea. Reach out if this duplex intrigues you or if you'd like to explore investing in Cedar Rapids more. There's another 4 plex with intriguing upside on the market now. I also have several off-market deals coming up.

*Some deferred maintenance needs fixed, which I would estimate would be less than $5k worth of work that may reduce your cashflow if it's included in the loan or require more cash invested at closing.

Disclosure: I'm a licensed real estate broker in the State of Iowa. Scottsman Real Estate https://scottsmanrealestate.com/