When buying rentals with a loan, what is the minimum $$ you want

[Nawzad Babiry]

So I have 2 rental property with loans that I make about $450 each a month on after paying everything. Property prices in Nashville TN are too high to pull the trigger on another one. My question is how much money do you feel like you need to make on each property in order for it to be worth your time. Interested to see everyone answer.

[Shiloh Lundahl]

@Nawzad Babiry For me there isn’t a hard fast rule when it comes to how much cash flow is worth my time. It really depends more on the purpose of the investment. 

I passed on doing some deals this year with a partner because the cash flow wasn’t high enough (under $200 per month) but then, instead of doing the deals with my partner, I did the deals with my 3 oldest kids. They are young and they didn’t really need the cash flow. One of the properties cash flows about $100, the other just less than $200, and the third actually ended up cash flowing about $300 a month. But the reason the I bought each of them was because I was buying into about 40k equity on each of them, with little of my own money, and I plan to keep them for about 4 years and then sell them at which point there should be about 50k - 60k equity in each of them. Which should be enough to pay a good portion of college if they chose to go or some seed money into learning to invest themselves.