What is a good cash flow on arental

[Bill Walsh]

I'm a newbie with a couple of rentals. My question is how to determine weather a house has a good cash flow. I've been told to try to reach a minimum 10% cap rate. I'm using net operating income total (NOI) / purchase price = cap rate. Any input would be greatly appreciated. Thanks; Bill

[Marcus Auerbach]

That depends on where you are and what type of rentals you have. Most people I know will tell you $200 per door after PITI, reserves, vacancies and property management is a reasonable number. You can get a little more on a good SF and a little less in a competitive market. I would not do it for less than $200.