How important is a deal?

[Adam Steinberger]

Hello BP! Long story short, I have a very comfortable net worth and no debt. I currently have 25 doors (mostly single family homes) and have a goal of 100 doors. With the current market my cash flow has been getting squeezed from $200-250 a door to right around $75 monthly (those numbers account for all expenses, including property management & CapEx). If I am very comfortable financially, have well over the 6 months of reserves for all properties and have the proper financing, how important is a "deal".

Am I wrong to think that what once was 18% IRR, and is now 13% IRR is still a good deal relative to anything else?

Side note: for clarification I have over 1 Million in Vanguard.

Thanks!

[Theresa Harris]

If the numbers make sense, then buy it.  Joe is right, it is about quality, not quantity.  I'd rather have one good house that cash flows $200 a month, than two questionable houses that each cash flow $100 a month.  You have to think big picture.  Cheap houses are cheap, but will have high turnover, attract less desirable tenants and have more operating costs as a result.  Think resale down the road as well as appreciation.