What do you consider a "good" cash flow for a property in 2024?
As I consider adding another property to my investment portfolio, I'm wondering - What do you consider "good" cashflow for a property?
Personally, I'm considering the purchase of a unit in an area I'm very familiar with and have two other nearly identical rentals in already. B class neighborhood. Average appreciation. My other two properties in this area cashflow $200/mo each, this new property would only cashflow $100/mo. Originally my thought was $100/mo is so low I'm not sure if it's worth it as I'll have to put in extra of my own money for reserves and it will be years until I recoup that money but then I remembered that all in for down payment and reserves I'll be putting in ~13k of my own capital. And it occurred to me that by purchasing this property I'll be increasing my monthly cashflow 25% going from 400/mo to 500/mo
Of course I'm not considering this in a vacuum, I have other factors to consider like appreciation, principle pay down, etc. But it did get me thinking - what are other folks considering a "good" cashflow for a property in 2024?
What amount of cash flow would you consider? Let's discuss!
Most Popular Reply
If as you say, you're not considering this in a vacuum, then why even single out cash flow or single out anything for that matter?
Cash flow is a sucker's game. People wanting to be rich today look at it. People wanting to be wealthy know better.
I have a unit that cash flows a NEGATIVE $700+ a month. Interested? 99% of the people would run from it just hearing that. Truth is, it's been an awesome investment and continues to get better every year.