Rental Property Investor · Canton, OH · Member since 2017 · 1k+ posts · 1k+ votes
Hello friends,
As we approach the end of the year, I'd like to evaluate my portfolio. I could really use some assistance as I'd like to compare my performance with what others are seeing in the midwest market to determine if any adjustments need made on my end.
My questions re: cash flow (w/leverage) are:
1.) Based off your experience, what calculation are you typically using for CF when making a final decision on a SFR? Be specific if you assume specific %'s of rent for expenses (e.g. 5% vacancy, 10% repairs, etc.).
2.) What's the average cash flow you see in the midwest (again, w/leverage)? What's the minimum you would accept?
3.) What % of your rent typically goes to your PITI?
Thank you in advance for any help! Super appreciated!
Disclaimer: I fully realize there's more to a deal than just a static calculation (CoC %, how much money you put down, time invested, condition of property, appreciation and value-add potential, etc., etc.). I am just trying to get a "general ball park"
Rental Property Investor · Salem, OR · Member since 2016 · 202 posts · 305 votes
6y
I’m disqualified to respond
I’ve invested in B- to C+ Properties in the Memphis market for years now and one of the first things learned years ago was just don’t have any debt on them. When there’s enough change in the jar it’s time to buy another 🤪
Rental Property Investor · Salem, OR · Member since 2016 · 202 posts · 305 votes
6y
I’m disqualified to respond
I’ve invested in B- to C+ Properties in the Memphis market for years now and one of the first things learned years ago was just don’t have any debt on them. When there’s enough change in the jar it’s time to buy another 🤪
Rental Property Investor · Canton, OH · Member since 2017 · 1k+ posts · 1k+ votes
6y
@Marisa R.
Thank you for the post Marisa (as you could tell I was getting a lot of feedback 🤣). So taking debt out of the equation, what type of cash flow do you generaly shoot for (a low/high range is fine if you prefer). Also, out of your gross rents, what % do you allocate to repairs, capex, vacancies?
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
6y
Hi @Account ClosedI invest in Columbus OH. All of my properties Cash Flow 30-40% of the total rent. This is investing in B & C areas. PITI is around 40-50%. Anything less and I think id camp around for a bit waiting for a better deal.