Base Cash Flow That Will Make a Property Considerable

[Dan Bottiglieri]

What is an ideal baseline cash flow for a rental property?  I believe Brandon Turner says he shoots for $100, I've heard other say $500, even some say $700+, I'd love to hear more opinions on this. 

[Ali Boone]

It completely depends. I wouldn't at all focus on the cash flow number... I'd focus on the cash-on-cash return. As an example as to why-- $700 cash flow sounds like significantly more (and better) than $100. But what if that $700 was on a $2M property whereas the $100 was on a $50K property? That $100 would actually signify a much higher return than the $700. That's the most obvious component that makes the issue relative, but then there's also the spectrum of risk vs. reward and active vs. passive. If you have two comparable cash flow or cash-on-cash returns, is there a difference in the risk levels of each and/or how active you have to be on them? If so, then that will also sway my answer.

I realize that didn't at all answer your question, but I'd take a step backwards and readjust what you're looking at, and then decide what you want to aim for.