Purchase price: $105,000 Cash invested: $90,000 Property needed some serious rehab, from trees roots destroying the basement walls, to plumbing, electrical, to roofing, landscape.

In the past, I cashed out my 401K(Paid income tax + Penalty).

The issue is his definition of cash flow. 

What you want to ask is what is a good ROI or better yet, your Cash on Cash Return.I know someone who has $3000 per month cash flow.

There will be multiple markets you can achieve a 7.5% cap rate especially if you're buying with cash.

It is typically lower than cash-on-cash and you can put it somewhere around 6% conservatively.

I negotiate at 70% ARV so the deals I bring are solid and I'd love to work with one single corporate cash buyer that is able to close  on several deals a month.

For southern states, you might want to look at smaller markets in Alabama, Mississippi, or parts of Tennessee and Arkansas where properties are still affordable and cash flow potential exists.

Despite wanting to handle it a few other ways I reached a small cash settlement with him to drop it.

Quote from @Patricia Steiner: Price cheaper with cash sale?