Does anyone net over $250/door in Texas...???

Question

Is it possible to net over $250 per door in Texas...if so, whereabouts? If not, what is a general approximate?

Thanks.

Clifford Paul · Answer

Yes! I my SFR's net from $503 to $1000 a door. My crash pads net $3000 per SFR or $1000 a door. If I can't net $500 a door I don't buy it. So needless to say I don't buy 90% of the deals that come my way.

Thomas S. · Answer

Be very cautious ofr landlords throwing around cash flow numbers. the majority will base their numbers on yesterdays expenses which have no relation to actual expenses goin forward. Many will "buy" there cash flow by paying down a mortgage. This obviously is not the true cash flow being generated by the property but rather y their own cash that they have put into it.

Not difficult to rave about positive cash flow if you pay 1M in cash and charge $2000/month rent. You have to take into consideration what is actually generating the cash flow and how much it actually cost to do so.

Account Closed · Answer

@Thomas S.

I agree...my question was similar to my hypothetical; using leverage to your advantage but not too much...your typical 20-30% down.

Account Closed · Answer

@Lexi Teifke

...unless you're referring to a SFH then ok, my apologies then i can see that. I was referring to MF's.

Account Closed · Answer

@Lexi Teifke

$560K property pulling in $4K a month...umm, I don't see that anywhere on any available source app.

Also, $560 debt is only about $35K annually without insurance.

Account Closed · Answer

@Lexi Teifke

If I may...what do you see? Like $200/door...?

Account Closed · Answer

@Lexi Teifke

Hypothetical...

4 unit's $1,250/door gross rent monthly

= $60,000 gross annual rent

60,000 x .65 (total expenses multiplier) = $39K

$39,000 - $27,000 (debt) = $12,000 net income

12K / 12 mths = $1,000

$1,000 / 4 doors = $250/door net

Frank Wong · Answer

Hello Frank,

Yes, it exists but only if you do a buy and rehab and add value.  It will work in C-B areas.  No, A areas.  Disclaimer I buy cash but I always run my scenarios as if I was putting down 30%.  I still see them today, actually just closed on one this month.  They are getting harder to find that is for sure.

Does anyone net over $250/door in Texas...???

Most Popular Reply