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Updated over 9 years ago on . Most recent reply
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What do you consider good cash flow?
I'm looking at a property in a college down that is a 4BR home. Looks like I can get around 500 per bedroom so $2000/month.
The property is an REO asking 120k. Waiting to hear back from my realtor on comps but it needs about 10k in repairs (windows, electrical, etc)
Putting into the analyzer, I am getting a positive cash flow of around 275/month being aggressive with my expenses. My Cash-on-cash ROI is around 13%.
What do you think about this? I'm trying to find somewhere that states what a good cashflow/ROI should be and results are all over the board from 5% up to 25%
Most Popular Reply
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When you say aggressive do you mean extra conservative ? College town sounds like solid rental pool going forward, but I'm guessing expenses could add up considering repairs after each turn over. With college students could that be multiple times a year. 275 sounds great but better to under promise and over deliver. Will you be managing yourself? What did you factor in for repairs and Capx ? Just some general questions that come to mind