Cash Flow $100-200/door. Good goal?

3 Replies

I have heard on several of the podcasts and read thru the forums that people aim for cash flowing properties in the range of $100-200/door. Is that a typical goal to set?

What I don't hear is what the cash on cash return is on that. Depending on what is put down, whether it is 30k or 150k, this will affect the return, which I feel collecting $100-200/door is not necessarily a good goal? 

Originally posted by @Dan Nim :

I have heard on several of the podcasts and read thru the forums that people aim for cash flowing properties in the range of $100-200/door. Is that a typical goal to set?

What I don't hear is what the cash on cash return is on that. Depending on what is put down, whether it is 30k or 150k, this will affect the return, which I feel collecting $100-200/door is not necessarily a good goal? 

I get $500 and more per door with $80,000 in Phoenix. It kind of goes like this:

https://www.biggerpockets.com/forums/311/topics/780022-3-ways-to-wealth-in-real-estate-cashflow-flip-hold-here-s-how

I wouldn't be satisfied with $200 a door. Stuff happens, vacancies, broken AC Units, water heaters and on and on. At $200 a door you are losing money pretty quickly.

 

Account Closed Thanks Mike. Yes my thinking was with a 200/month cash flow with a 130k down (CA property) that's only a 1.8% COC.

Read your link. Very interesting. So that's an assumable loan you took over? How do you find people to buy from like that?

As far as finding the buyer, do you list it as a rental with a lease option to buy?

Originally posted by @Dan Nim :

@Mike M. Thanks Mike. Yes my thinking was with a 200/month cash flow with a 130k down (CA property) that's only a 1.8% COC.

Read your link. Very interesting. So that's an assumable loan you took over? How do you find people to buy from like that?

As far as finding the buyer, do you list it as a rental with a lease option to buy?

 It isn't an assumable loan. Those pretty much went away years ago. This is called "Subject To" which simply means taking over the loan without going through the formality of an assumable loan. Sure, I just sell it as a Lease Option. The California investors I provide Turnkeys to get the same benefits. The market in AZ is cost beneficial to CA investors and a lot closer than other choices.