I have used the BP calculator for several potential properties after listening to Brandon's webinars. After running numbers, it seems he's very unrealistic about his numbers. He states you shouldn't purchase a property unless it cash flows $200 per unit and has a cash on cash return of 12% of more. I can't find things that are remotely close to that as well as many, many of them are neg cash flow. I saw responses that talk about "rent to purchase price ratio". Not sure what a good number would be and a little confused as to remarks such as nothing as positive cash flow which is in direct contradiction to what Brandon purports for BP. Any feedback?
Hey @Debbie Dobbins , it really depends on the area you are looking in. If you're in LA, cashflow is impossible. If you're in the midwest, cashflow is everywhere.
It also depends a lot on WHO you're looking at getting deals from. Are you looking on the MLS, sheriff sales, wholesalers?
The BRRR method that BP promotes is a great one, and is almost the only way to make a grade A neighborhood home cashflow. Another option though is a turnkey rental. For 40-60k you could get an already rehabbed and occupied rental that's getting $1,000 - $1,200 a month in rent.