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Updated over 16 years ago,
Cash Flow on a 4 family
Using the $100 cash flow goal, on a 4 family do you shoot for $100 x 4 doors or is the formula different for a 4 family? I'm looking at one that with the 50% rule cash flows $170/mo and using John's 40% it comes in at $320/mo. I plan on doing my own management so I'm looking at the 40% number as I don't want to miss a decent deal.
I can see $100/door for SFH & duplexes but I think that 4's are a little different as in this property, as long as 2 units are rented that will cover all monthly expenses-PITI, water and sewer. With SFH's & duplexes, they have to be 100% rented to break even.