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Updated about 14 years ago, 10/07/2010
question about cash flow on rentals
hello. i am a new investor who plans to rehab and hold properties. my original idea was to rehab properties but my husband prefers holding them for now due to the current market. so we have been trying to calculate numbers that will give us about $200-250 cash flow but we just don't see that happening. after paying back our loan (LOC, hard money, etc) and leaving money in reserves, there's barely any cash flow left for profit! is this a common problem or are we missing something? we don't have cash, so all of our calculations are based on loans and lines of credit. are there types of loans specifically for rentals? if so, can you share what those are? we are hesitant to do conventional financing because that only allows for a handful of properties and we would like more than a handful. thanks. rocio