New Investor: If a deal is not making $200/unit is it worth it?
First time investor. My goal is cash flow.
In Brandon Turners real estate book he said we should aim for deals that are 80% of asking and making a minimum of $200 per unit in cash flow after all expenses.
In the inspection phase of a deal on a fourplex and the estimated renovations are getting closer to $200k (will do another post on that). The increase renovations cost could potentially take my cash flow down to $150.
If I’m no longer making $200 per unit is that a bad deal?