I self manage my properties. I prefer $300 and up for net cash flow per month. I'm looking at a duplex that net cash flows at $160 a month. I think that is low. Just wondering what your minimum net cash flow per month is for purchasing new units. And do you self manage or use a PM. Not trying to get to personal but if I am just say so. Sorry in advance.
The problem is that everyone has different tolerance levels.
John Smith lives paycheck to paycheck. He inherits $30,000 and wants to buy an investment property. Based on his financial situation, he should be sure to set aside approximately 50% of the monthly income and build a reserve and I would recommend he cash-flow an additional $100 or more on top of that as a buffer.
Jackie Bee makes over $100,000 a year, has almost no debt, and maintains a savings account with three months of income for emergencies. If Jackie were hit with a $10,000 roof repair, he could easily absorb the cost with his savings. Jackie could buy an investment property with no cash flow because his financial wellness provides the safety net.
I hope that helps.