LOW CASH FLOW BUT AMAZING COC. WORTH IT?

[Connor Rice]

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[Reece Iovine]

I agree with @Steven Foster Wilson, another thing I like to look at is the over all dollar amount of cashflow not just the coc percent.

If you do an owner occupant low down loan you might have 30% coc because you have such little money in the deal, however your actual cashflow is only say 100 dollars on a duplex.

This might still be a great deal but I'd be careful, what if the market tanks and you need to drop rents 100 bucks a side to get the deal leased up. Now you are negative cashflow.

On an ideal value add deal I look to have profirma cashflow of 15% or more and $250 per unit. But this won't be the same for all markets its just a safety thing I keep an eye on.