Single Family Home Rental Metrics
I have a question for all of the VA landlords out there...
To this point our primary focus has been on developing our rehabbing business and putting cash back into the company. As we work through a couple deals to round out the year we are starting to think about next year and what our goals will be.
We would like to start building a single family rental portfolio. The loose strategy would be - every other flip or so we do, pick up a rental property, with a goal of acquiring 4 rentals in 2018.
I have utilized the BP rental calculator to run numbers and have familiarized myself with the terminology but I'm curious to know what metrics make an acceptable rental for your business and why.
To me, if I can finance a property with 10-20% down, cash flow a couple hundred bucks a month on a 20 yr note and get close to the 1% rule I think I'd be cool with that to start. I want to buy homes in B&C areas so I know I may get less cash flow but hopefully less headaches as well. For reference I'm in Central VA, in the Fredericksburg area.
I would like for some of you guys & gals that have way more experience than I to point out the flaws in my logic and hep me understand how you evaluate what numbers/metrics would make a good rental.
Thanks in advance for the insight!!
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Virginia,DMV,Maryland,Washington DC, DC, NOVA, Woodbridge, Fredericksburg, Stafford, Spotsylvania,Richmond, Charlottesville, Norfolk, Virginia Beach