@Gerard Aliberti
Great question. The question I have for you is what’s your end goal?
$100 per door isn't as important as the COC ROI (cash on cash Return on Investment).
Essentially divide your monthly cash flow by your initial investment.
What do you have to look at is what would you expect as a reasonable return if you invested that money into something else, like a business or stocks etc.
For example if you only had to put $10,000 down on a property and your cash flow was $100 a month, that would be $1200 per year / $10,000 or 12% COC-ROI. That's pretty good, especially in the current market.
If you put $100,000 down and cash flowed $1200 per year or $100 per month, that would only generate a 1.2% COC-ROI.
Your Real money comes as:
1. you pay down the mortgage with the help of your tenants, increasing your equity.
2. The property appreciates - increasing your equity.
3. Depreciation and tax savings.
4. Most important - monthly cash flow, which increases over time as your mortgage goes down or is paid off and rents increase over time.
Hope that helps. Keep asking great questions and you’ll be on track to be a pro!
