When you run your deal. It shows you cash flow. Say you are looking for $300 (could be any number) of cash flow on each unit. Is that after you take in for count capx, property management, expense etc. The way I look at it is if you only look for $300-$500 cash flow in each unit after you pay all your expenses you don’t really make that much. What’s your thoughts comment below.
It really depends. $300-$500 a month net cash flow per unit, but what did the units cost in the first place? If you do a no money down or BRRRR deal where, at the end of the day, you have none of your original capital invested - that sounds like a good deal to me.
Cashflow is generally defined as whatever is left over after you have paid ALL of your bills. This includes your mortgage, property management, as well as expected vacancy rates, maintenance and cap ex costs.
As to your question if 300-500 is a lot, I guarantee you it is. A single 16 unit building could likely replace your entire W2 income. Nobody retires from owning a single house, it takes several.