Purchase price: $142,000 Cash invested: $12,500 We were able to RTO this home at a purchase price of $184,000 at a monthly rate of $1,850.

Deal Breakdown & Cash-on-Cash Confusion – Need Help!

Cash flow doesn't generate wealth. 

@Javier Esquivel holding or selling would depend on what the property would rent for, what type of debt can be placed on the property and at what cost..Let's look at the numbers.value $117K75% ARV $87,500(Assuming this is lenders LTVRepairs $35Kall in after purchase is $68K(Depending on closing costs etc...)If the property would rent for a minimum $1400 I would hold as the property will cash flow and I would have the ability to take out all of my initial investment after lenders seasoning period.Delay finance at $75K @ 6% 30Yr Am P/I($500)\cash flow $200 per month at 50% expense ratioyou'll have $0 money into the deal with cash flow and around $42K in equity.This would be a no brainer hold for me.All the best!

The first question is can I buy more properties that will cash flow? 

I'm aiming for solid returns (10% cash-on-cash?)

Thought I would pass it along.The Myth of Cash FlowI'm still a firm believer in cash flow.

Either way, the cash flow will almost certainly be less. 

@Audrey SommerAgree with @Nicholas L.If I may, it’s not a 50% cash flow rule. it’s a 50% operating expense rule. 

Quote from @Hai Le: Just curious to see, are there any DSCR lenders out there that offer 90-100% LTV Cash out refinances on a 2 unit, multi family property?