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Updated over 4 years ago on . Most recent reply

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Wayne Kerr#2 Buying & Selling Real Estate Contributor
  • Rental Property Investor
  • Somewhere over the Rainbow
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Trouble finding cash flow + single homes

Wayne Kerr#2 Buying & Selling Real Estate Contributor
  • Rental Property Investor
  • Somewhere over the Rainbow
Posted

I'm a current homeowner and new investor - I keep running into an issue finding cash positive single homes. 

First off - Primary reason I am interested in single homes is I believe they will be easier to sell in the future

I've ran the the Biggerpockets calculator on rental homes and a few others and even with "cheap" homes (<140K) I am having trouble getting them cash flow positive. 

Screenshots from a recent calc I ran (I continuously run into this issue):

I've been looking at houses in the 120-140K range in the area that I live. I can put 20% down no problem...the issue is getting these cash positive while charging a competitive rent rate. I will have to have a property manager initially just due to my lack of experience and that I work out of the country for weeks at a time. 

Most Popular Reply

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Bjorn Ahlblad
  • Investor
  • Shelton, WA
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Bjorn Ahlblad
  • Investor
  • Shelton, WA
Replied

@Wayne Kerr CF and SFR is a challenge these days for sure. You need to find distressed properties that can be rehabbed and repositioned. SFR is easier to sell and will show better appreciation-generally; but CF will be modest. It is a tough market consider duplexes and four plexes that need rehab. All the best!

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