What is your goal for monthly cash flow after mortgage?

[Dave Mosher]

When analyzing a deal, how much cash flow per unit do you aim for? I am specifically thinking not just after expenses, vacancies, amd repairs but also after any mortgage.  Does this differ for you if you are analyzing a multi family vs. a single family?  Thanks,

-Dave

[Mike Dymski]

Consider two things...one, thinking in terms of profit rather than just cash flow.  Profit in real estate comes from cash flow, principal reduction, appreciation, and tax benefits.  Second, think in terms of profit per property rather than per unit.  Many investors would rather have a 30 unit property making $150/door than a 4-plex making $300/door.  It's a mindset shift.

Many investors include management cost in their analysis even if they self-manage.  You need to get compensated for self-managing; so, there is compensation for self-management that is separate from the investment profit.  Plus, you may want room in the financials for 3rd party management if you ever want to or have to use it at some point (move, job change, have kids, other commitments/interests, etc.).