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Updated about 7 years ago,
recession proof cash flow level
Hi all and thank you for your replies,
we own several multifamily properties (duplexes and six units) with a buy & hold approach. All have been cash flow positive since day one and, given they are all in the pacific northwest, has enjoyed significant price appreciation (1x-2x on all of them since '08).
now the problem, i am concerned about a recession (i bet either by end of '18 or in '19) and longer term i am concerned about 1) public unfunded pension liabilities 2) interest payments on US debt 3) impact that automation will have on employment/renters...basically longer term i am worried about a S^%$ Hitting the Fan scenario. So my question is, what level of net cash flow (net of all expenses, debt payments, 3-5% rent reserves) is recession proof? is it $300 per door/month? $500? you can assume we have adequate reserves to cover 6 months of expenses.