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Updated about 8 years ago on . Most recent reply

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4
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Matt Herring
  • Cross City, FL
0
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4
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Why can't this property cash flow?

Matt Herring
  • Cross City, FL
Posted
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

Account Closed
  • Rental Property Investor
  • New Jersey
32
Votes |
60
Posts
Account Closed
  • Rental Property Investor
  • New Jersey
Replied

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).

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