How much $ to get $5,000 cash flow?

Question

I now its a loaded question with probably a thousand answers, but I'd like to hear your thoughts on how much it would cost and what types of investments you would recommend to get about $5,000 monthly cash flow. It would be leveraged, so I'd like to clear $5k after ALL expenses including debt service. What are your thoughts?

Jon Klaus · Answer

What Every Real Estate Investor Needs to Know About Cash Flow... And 36 Other Key Financial Measures by Frank Gallinelli

Frank did one of the early podcasts here at BP. Podcast #4.

Jeff S. · Answer

Account Closed looked at your bio and I see you have quite a bit of property. Would it make sense to assume the same kinds of returns you are now getting? With that one could piece together an answer to your question.

Is where you invest in NC a cash flow area? What type of financing is there for these types of places.

Maybe you are thinking of apts?

A 10% cash on cash... ok you do the math.

Account Closed · Answer

@Mark  Ferguson , that is great! I may just keep doing what I am doing and build it up one piece at a time like you have. I would love to buy it all in one acquisition if possible though.

Account Closed · Answer

@Jon Klaus , I am normally pretty willing to take on risk, but on this one I'd like to to be lower risk (I understand it is still RE with inherent risk). I will have to leverage a property this size, but I do have money for a down payment.

If I can add $5,000 more true cash flow, I don't mind to be hands on because that is going to put me at my target number to quit the full time job and focus more on REI.

Account Closed · Answer

@Jeff  S. Thanks for the reply. I do own several properties and like to flip properties, but I'm looking at various options to add another $5k of cash flow. My current investments (8-unit apartment, 2 single family rentals and 2 mobile homes) are all so different because of their individual circumstances  I can't really get a good feel for what to go after next.

I am thinking of possibly going into commercial non-residential, but I am so green in that area it may not be wise. I am also considering trying to sell the 8-unit building and buying a larger multifamily property.

I just want to hear other's opinions and see what options are out there.

Mark Ferguson · Answer

I'm buying from $80,000 to $130,000 with 20% down. The $30,000 comes from down payments and repairs on the  homes.

Mark Ferguson · Answer

@Eddie T. , yes and monthly rents range from $1,100 to $1,500.  30

Year arms with piti around $450 to $600.

Chris K. · Answer

Here is a really good BP write up by J.Scott that covers the different numbers you'll deal with in REI.

Introduction to Real Estate Investment Deal Analysis

How much $ to get $5,000 cash flow?

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