Buy and Hold Rental SFR

[Franky Juwana]

I'm about to purchase my first Buy and Hold SFR, Most the properties rental around 1% out of the asking price and tax about 2% from the asking price. So I started from there, then I went a little deeper and using Biggerpockets Rental Calculator and started plugin the numbers.

After seeing the results, mostly the cash flow is negative and Cap Rate is not even close to 5%. Am I looking at the wrong location? 

My questions are;

1. What are you strategies to achieve at least $100 cash flow after all expenses. 

2. Can you guys share any unique method to offer the seller without insulting with low ball offer. Is there any incentive that I could offer to make it attractive?

3. This is outta state rental, so I know resources is kinda limited and is it wise to buy a property that need rehab or just buy the one that ready to move in. 

Thank you so much in advance