How much would you spend today for a monthly cash flow of $40k?

[Venice Victory]

That's it, that is the question!

How much would you spend today for a monthly cash flow of $40k? Explain.

[Steve Vaughan]

Quote from @Nathan Gesner:

In a really good market, an investor can achieve 1% of the money invested. So $4 million invested would produce $40,000 monthly cash flow.

But there are many variables along the way.

"In a really good market, an investor can achieve 1% of the money invested. So $4 million invested would produce $40,000 monthly cash flow."

 We're getting our $40,000 a month and $40,000 a year mixed up.  Or maybe our 1%/mo vs 1%/yr. 🤔

For me, each $800k of mortgages carried generates $3500/mo or $41,000/yr as an example. These avg 5.8% and truly effort-free.  You can adjust the amounts as needed. If you want $40k/mo, X $800k by 10 basically.  

My managed b&h b-class assets generated about 6% in net cf my past couple years. Self-managed but outsourcing repairs and maintenance 8%, self-managed DIY repairs and maintenance 10%. Per year.  

Your return will largely depend on how you operate it. Having management in place always costed me 12% even with a '7.75%' fee.  So $40,000/mo divided by 6% x 12 would be $8,000,000.