What is your cash flow target for SFRs?

[Aaron McKenzie]

Hello everyone! I have a quick question I’m curious what everyone thinks. With my rentals I set aside 5% for vacancy, $100 for maintenance, and $50 for property management (I self manage, but this is just to cover my overheard). After all of these expenses and PITI, I usually shoot for deals that will net me a cash flow of at least $200 per month. It has been getting increasingly difficult to find good deals in St. Louis that will hit this number, even from local wholesalers. However, I can find deals that will make $100-$200 in cash flow all day. My question is - would it be foolish to reduce my cash flow target so I can buy more deals? One other thing worth mentioning is that I use a line of credit to buy the house, I then fix it up and refinance once it is rented. (BRRRR) So I am growing my portfolio WITHOUT using any of my own money. Is $100-$200 in cashflow worth it?? :-)

[Don Griffith]

I agree with Jordan about the slow but positive potential growth.

HOWEVER....

Never talk yourself into making a bad or marginal deal just for the sake of making a deal. Let the numbers decide for you. If you have to "sell it to yourself" the answer is no.

Maybe your market sucks, or maybe you need to look in another direction, or at another market.  There are always deals, just not always where you are looking.  That's why BP is awesome, its like a think tank.  Are you looking at ALL of the opportunities in your area, or just the ones you are currently familiar with? 

There is a saying in the shooting community: You can't miss fast enough to win a gunfight. In other words, don't value speed over accuracy.

And to answer your original question, mine target #'s are much higher, but I don't buy nearly as many properties as others do either.