Rental cash flow vs down payment

[Alessandro Struppa]

All,

What is the ideal cash flow per unit for a specific % of down payment? I’ve watched numerous webinars and 100$ to 200$ seems to be the number. My question is what % down payment should be giving me that cash flow? Of course if I go 80% down my cash flow will be very different. Also.....Would it be better to invest in a duplex at 40% down or 2 duplexes for 20% down each? Considering they are exactly identical and produce the exact same cash flow. Sounds to me 2 duplexes would be better as both would be going up in value compared to only one. 

I am new to real estate investing. Just purchased a single family as a rental property and now looking into duplex maybe 4plex. 

Just trying to understand how to analyze my deals properly.

Thank you!

[Larry Turowski]

Originally posted by @Alessandro Struppa:

@Jason D. Seems real hard to find a deal producing positive cash flow with 0 down but then again I just started with this. I only have one investment property at the moment and it would definitely not produce positive cash flow if I had zero down. Also COC at 9% which is not huge but okay for my first investment with little to no knowledge of the business.

It is hard.  Most investors don't pull out 100% of cash invested most of the time.

Having a narrow business model like Jason can work if you get enough deal flow.  You could say the same with marketing.  Buying $100K homes only is fine as long as you have enough deal flow.  I flip--in two states now--and buy and hold.  For buy and holds some I do finance out 100%.  Some are in A-B neighborhoods, some in C-D.  Now I'm branching out into small complexes.  All of this broadening of my scope is to broaden my deal flow.