What Does Real Cash Flow Look Like in 2025?

Question

Kicking off my first post here with a question I’ve been reflecting on lately:
What does actual cash flow look like in 2025?

I’ve been in real estate for nearly 10 years—flips, STR, MTR, by-the-room, and LTR. I’m now based in Columbus, Ohio, but I still own and operate 6 rentals in Norfolk, VA, which bring in around $3,500–$4,500/month net.

At one point I had 16 units, clearing about $8K/month, but I trimmed down for simplicity and efficiency.

I also ran a profitable Airbnb in New Orleans via rental arbitrage, which gave me great insight into short-term rental operations without owning the asset.

The market’s different in 2025—rates are higher, prices are sticky, and cash flow is tighter—but I still believe there’s opportunity if you:
✅ Buy with intention
✅ Use the right strategy (STR/MTR/LTR/etc.)
✅ Self-manage or add value yourself
✅ Focus on net, not hype

I’d love to hear from other investors:
→ Are you still seeing cash flow?
→ What’s working in your market (and what’s not)?

Let’s keep it real — no guru math.

Dan H. · Answer

My view is if you pay retail without a value add, the cash flow on a traditional LTR using conventional financing cannot justify the work and risk of residential RE in the near term.  With patience virtually all RE purchases look good.   I am not that patient.

So how do you purchase RE to achieve a decent return sooner than holding 10 or more years. One or ideally more of the above must not be the case.

- buy below retail.  This implies off market purchase.  In general off market purchases have elevated risk levels.

- have a value add.  Create some sweat equity.  Realize value adds typically require work and have risk

- use a rent model other than traditional LTR.   STR, MTR, rent by room.  Each of these require more effort than a traditional LTR.

- alternate financing: assumable, owner financing, sub to, NACA, lease to own, etc.

- be very patient.  Wait for the cash flow to improve and the appreciation to add up.

good luck

Arman Ahmed · Answer

@Joseph Snyder

Love this post — appreciate the real numbers and experience backing it. I’m still seeing cash flow, but it’s tighter than before, especially with debt service eating into margins. I’m finding 70–80 cents on the dollar deals in markets like Dayton and Cleveland, and making them work through value-adds and self-management.

Biggest wins lately come from being selective and staying local with contractors and PMs. Are you leaning more toward scaling again or keeping it lean and optimized?

Joseph Tadres · Answer

Hey @Joseph Snyder, I'm in Columbus too, and you're spot on. Real cash flow in 2025 feels like $200–$400/month per unit after all expenses. Deals still work, but only if you buy right, add value, or get creative with financing. For me, small multis in C/B- areas with strong rental demand (like Section 8 or MTR near hospitals) are still solid. Always happy to connect if you’re looking local.

Dan H. · Answer

I suspect you and I use very different underwriting.  What does the 50% rule show?   Note I would consider 50% rule aggressive to very aggressive in Cleveland.   Also how did you determine your maintenance and cap ex estimates?  Is your estimate intended to be full sustained maintenance/cap ex?   Hopefully you did not use some calculator’s default percentage of the rent.

Be leery of underwriting by anyone that occupation relies on RE sales.  Also be leery of underwriting by anyone that has not been in the market long enough to have long life cap ex failures unless they indicate their cap ex is derived by cost and expected lifetime.   Actuals will not suffice until 30 or 40 years because some cap ex items last that long.

I do not know much about KC except someone from this market (@Lee Ripma) has made it her primary market.  She knows her stuff.  Because she knows her stuff, I suspect she is acquiring either below market or value add and probably both.

I stand by my post.   Post the underwriting for one of these Cleveland or KC rent ready MLS properties.

Good luck

Jeremy Horton · Answer

There's 2 avenues to invest (to me personally at least):

1) Equity capture at the buy

2) Favorable financing that allows you to cashflow

Regardless you'd have to buy well under market (that's what investing is anyway, right?). So you can cashflow with traditional financing if you buy at a cheap enough price or if you get some below market financing terms (seller financing fixed at 4-5% and negotiate a balloon payment or IO for a period)

If you can't cashflow enough then you need to capture enough equity to be able to flip relatively soon or break even with cashflow. The equity capture at the buy would essentially be your return as opposed to a CoC return. So your net worth increases but you don't cashflow much.

My equity capture scenario - I bought a house for 160k, put ~7k into it, and it's easily a 200k house. It cashflows after property management about $150/month. New roof/hw heater/AC/flooring/paint so low CapEx for the next 10-15 years.

My cashflow scenario - bought a duplex in 2021 - total mortgage was $616/month. Rented for a total of $1350/mo. Mortgage has increased over the past few years (primarily due to insurance) to 889.96. Still rents for $1350/month. So nearly a 50% increase in the mortgage payment over the last 4 years. Has a good bit of deferred CapEx coming up in the next few years as well. It's tough

Also labor has gotten A LOT more expensive - borderline unaffordable. Plumbers used to be $85/hour and I'd get a discount down to $65/hour. Now? $135/hr with one company and $175/hr with the other. Insane. So rehabs have gotten more expensive? What does this mean? That you have to buy at an even further discount

That's the two sides of the spectrum for me anyway - I've been able to increase rent on one house from 1200 to 1350. Although I suspect the $1200 was a little low to begin with. Mortgage there is ~750/mo.

Small multifamily are really the way to go - ideally 4 units. The cashflow is higher overall, it's affordable so there will always be demand, when there's vacancy it's only 1/4 of the property as opposed to a house that is 100% etc etc

Jeremy Horton · Answer

There are a ton of ways to find off-market properties - personally my route would be farming a specific area by sending flyers, utilizing propstream, skiptracing then contacting the owners. Secondly having a website so that motivated sellers come to you is always a good lead generation route - from here you would funnel the leads into what fits your buy-box, then reach out to owners to get the condition of the house (so you can valuate it) then make an offer at <75% of what the ARV value is. That's what my next step would be if I continued the LTR route.

That being said I am not actively acquiring right now. Stabilizing what I have now.

I'm trying to figure out what makes the most sense right now - RE is more work for the same or less returns of the past. The stock market is on absolute fire and there is an AI boom coming. I believe it in. Bitcoin has gotten too big to fail - it has plenty of issues sure, but I think the long-term outlook is looking really good. Institutional  investment in BTC is increasing rapidly. Running/Developing a business is also interesting - the business is valued on the income as opposed to what my neighbors house sold for (comps). The business cashflows more than RE.

So I am trying to figure out exactly where RE investing fits in all of this - if I can't legally steal it, I'm not sure it makes sense right now. I think there are other opportunities that may make more sense at this moment.

Damon Aniton · Answer

I am not so sure about that first statement.  I think it is more market dependent.  I am looking into several properties in Kansas City and Cleveland on nothing but Redfin that will turn a decent profit.

Damon Aniton · Answer

I purchased my first property in January 2023.  A duplex in New Orleans.  Brand new 6 bed 6 bath up and down layout.  I have both units rented on section 8 which has been fine.  The only real problem I ran into was it being a poor build by the builder in ways that dont show in an inspection.This in the long run is more of an inconvenience than anything as the state has home warranty mandates that is covering all this long term.Since then I have completely revamped my buy box with my little more than 2 years of experience.  Pushing me to mid west cities with single family and multifamily homes in that 50-120k range.  Now that I know how to better and more efficiently navigate the section 8 landlord process and work within their rent price guidelines.  It makes finding properties and still turning a profit easy'er.

Joseph Snyder · Answer

That’s super insightful! Finding those below-market deals really is the key. How do you go about finding them? Driving for dollars, networking, off-market leads? Are you actively acquiring right now or more focused on stabilizing what you’ve already got?

Joseph Snyder · Answer

Excellent points! Appreciate you sharing. My next post will touch on exactly what you shared!

What Does Real Cash Flow Look Like in 2025?

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