What's the Norm in Out of Pocket $...$0 Out of Pocket Seems Unatainable in Dallas

[Jimmy Watson]

My wife & I have been trying to wrap our heads around what's a good buy and hold deal.  For instance, we are looking at one currently that could take around $25k out of our pockets, but it would cash flow around $500 a month (before vacancies & maintenance). 

From local investors, I'm getting "That's way too much out of pocket!"  Or, That is a fantastic cash flow!"

I think both statements are correct. For me, that does seem like a lot out of pocket...but it's a great cash flow. My naive ARV range is $75-$125k. I'm being told my max LTV will be 75%. I'm not finding (and maybe I'm not looking in the right places) the deals that would get even close to $0 out of pocket. To top things off...things are skyrocketing in the Dallas area it seems, which makes it even more difficult to find deals that aren't going to take $15k+ out of my pocket.

Thanks for reading.  Although I'm frustrated and venting, I would really like some input on how to relate out of pocket vs cash flow.  Is the out of pocket amount plus the amount from cash flow a personal amount (comfort level)?  Should I be looking at this as cash on cash return and if I'm comfortable with the monthly cash flow?

Thanks!!!!