Cash Flow Numbers

[Runman]

Hey everyone,

I was just wondering what your opinions are regarding what cash flow should be when purchasing a property. Say, a 6-8 unit property priced at 500000 with say 15% down with CHMC. I have heard that 100 dollars per door of positive cash flow is ideal. What do you guys think on this?

Thanks

Josh

 

[Nir]

Yes, $100 per door is a common goal. However, I ensure closer to $200/door on mine.

 

[invst4profit]

$100 per door is a base starting point but it does depend on the number of door being considered.
ROI is also a critical factor.
The key is determining cash flow before you actually own the property. Calculating/estimating expenses can make or break novice investors.

 

[gwasser]

QUOTE (invst4profit @ Dec 31 2009, 09:39 AM) $100 per door is a base starting point but it does depend on the number of door being considered.
ROI is also a critical factor.
The key is determining cash flow before you actually own the property. Calculating/estimating expenses can make or break novice investors.


Also consider the quality of your cashflow - how stable or predictable is it. Do consider when your first check comes in - with a property manager that may be 2 or 3 months down the road.