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Updated almost 8 years ago,
$12000+/yr cashflow per SFR?
I currently operate in an investing niche where I can buy SFR's and rent them at $12-15k net income per year. But each transaction requires that I keep between 50-80k tied up in each property.
My question is whether this is a good place to put my money to work?
My immediate alternative is to buy duplexes that cash flow about 3k per year but They require little to no money tied up in them (varies from money in my pocket after refi to 10k left in), using the BRRR method.
Obviously the BRRR method is more sustainable since it requires less Capitol and the COC ROI is higher but there is a tradeoff on # of hassles & headaches with significantly more doors.
Appreciation is not something I can count on in either case so that ain't being considered as a factor.
Also both figures above are for a PM managing them.
Part of me really likes the efficiency of max cash flow from a minimum number of properties.
I'd really love to hear from anyone who's got a different perspective. I feel like I am missing something. Thanks!