I found a deal that cash flows 8,600 a month

[Justin Lee Taylor]

The guy is selling 20 units for 700,000. It isn’t an actual 20-plex but he is selling 5 building all together that consist of 20 units. It cash flows 8,600 a month right now with only 2 vacancies. The properties are being rented 500-650 a month on them. The cash flow numbers work but is there more to it? Is that all I need to look at

[Sam Grooms]

$1,750/unit/year of operating expenses? I doubt it. Operating expenses of 25% of income is a red flag, especially with such low rents. 

Also, I think you're confusing cash flow with net operating income (unless you're paying all cash?).