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Updated about 8 years ago on . Most recent reply

Why can't this property cash flow?
This property isn't hitting the 2% rule but it is a little better than 1%. Purchase price $52K Rent $600.
Why can't I make this cash flow positive?
Purchase Price $50K
Closing costs $2K
Down payment $10K
Financed amount: $42K
Interest rate: 6.5%
Expenses (monthly):
Payment $265
Taxes $100
Insurance $50
Maintenance budget $105
Vacancy (1.5 months rent) $75
Total monthly expenses $595
So yea it cash flows $5.
But the problem is I can't find ANYTHING in my area that can be cash flow positive. This is the closest. Am I doing something wrong?
Most Popular Reply
Percentages are great for math purposes. But absolute numbers are important for real world purposes. I've noticed a lot of successful people on the podcast mention a minimum absolute number (at least $500/door, at least 35k per flip).