what kind of cash per door are you seeing in your area?

3 Replies

subject says it all: what kind of cash per door are you seeing in your area? 

@Rigo V. on my nine unit in Berwyn I am seeing a little over $200 per door in net cash flow. On my very first purchase in Lyons, IL I am getting $140 per door (I refinanced this one so I get less per door now).  These are probably not your average deals in this area, but it is certainly achievable. Several clients of mine are purchasing deals in Berwyn or Forest Park that could reach the $200 per door metric. 

Hey @Rigo V. , I'm somewhat new to this as I only have a couple of properties, but doesn't the answer to this question depend on a bunch of variables, such as how much you're setting aside for capex, property manager %, maintenance reserve %, and vacancy allowance %? Or are you assuming anyone answering this question is smart enough to set that aside and is taking that into consideration when answering this?

Personally, I self-manage because I like it, and I bring in about $200 every month after all expenses and improvements.

I've always though the per door metric was a little misleading as it gives no credence to size of unit, price paid, etc. For example, I try to focus on larger units (3/4 BR) as my goal is to LIMIT the number of total units I own relative to the cash I have invested, mostly because I want to self manage with minimal extra effort at this stage in my career. This does not mean that I don't have cash flow standards, simply that a per door metric is extremely arbitrary in the sense that someone like me could deploy the same amount of cash across 1BR and 2BR units and report a "per door" figure that is half of mine. 

For what it's worth, I cash flow at roughly $415/mo/unit across my units (or 12% CoC :)), self-managed here in Denver.

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