The reason for this is that the month-to-month tenant will leave the property sooner and thus you will have to come out of pocket to prep the property for the next tenant (i.e. clean it up, repairs, paint, etc.)

We bought a rental for cash about 8 years ago and it's cash flowed very well.

You can find good cash-flowing markets in the SE.

In fact even with all the hassle, this has been my most profitable property because the cash flow is the highest and with all the late fees added in I actually had a decent year.

Cash flow was around $350 per month.Step 2: Sold the condo using a 1031 exchange to roll over the taxes.Step 3: Bought a primary home in a LCOL city for $200,000 and rehabbed it.

Each of my properties should cash flow at a minimum of $100/door, with $300/door as an ideal.

This will be my first rental property so want some advice.Purchase price - $195KDown payment - $59,176 (25% plus other closing)Annual rental income - $29,424 ($2,452 a month for 4BR)CoC return 10.7%Cap rate - 9.7%; Price to rent ratio - 6.6Cash flow will be over $5k per year after paying taxes and mortgage.

I can definitely tell you there's still a lot of positive cash flowing and 1% rule deals and you get amazing appreciation.

Does anyone know a few markets where the cash flow is decent but the purchase price is low?

If it's a newer company,  and projected to grow, you might consider their projected discounted cash flows to evaluate the company.