What is a desired entry for x amount of cashflow a month?

[Shem Varhaftik]

Hi, I see tons of potential with seller finance and subto deals. I want to get a good idea of whether an investor would deem as a good deal. Lets say you purchase a property for 900k and put 20% down and cover all closing costs. Your all in close to 230k. Lets say this property will cashflow 4k a month after making payments to the seller. Is this a favorable deal to an investor? is there a certain rule I should follow for entry cost: cash flow? 

[Joe Villeneuve]

Quote from @Shem Varhaftik:

Hi, I see tons of potential with seller finance and subto deals. I want to get a good idea of whether an investor would deem as a good deal. Lets say you purchase a property for 900k and put 20% down and cover all closing costs. Your all in close to 230k. Lets say this property will cashflow 4k a month after making payments to the seller. Is this a favorable deal to an investor? is there a certain rule I should follow for entry cost: cash flow? 

My golden rule is the cumulative CF should recover all of the cash in within 3 to 5 years max. So, if your cf per year is around 50k, and your cash in at 230k, for me this would work