I do buy and hold rentals. In my market I aim for a 1% monthly return on total outlay after expenses. That means if I buy a house for $50k I look for at least $500 clear per month. Not an easy thing to do where I am because there is a lot of demand for low-end houses and a cap of about $2k/monthly for market rent, but I have two right now that clear 12% & 14% annually, which is 1% & 1.2% respectively. If property taxes were higher here it would be very difficult to clear 1% monthly IMO.
As far as the houses I have certain construction & location criteria that I use that I won't divulge on here ;) .
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