Cash Flow
Hey guys, broad question here, and I know there are a lot of variables but i'm wondering what you're looking for in terms of cash flow when buying a rental property. For instance if it's only cash flowing around $100 after ALL the expenses are you even dealing with it? What number would you call a "deal?" By the way, i'm talking about your typical single family home (3br/1ba etc).
I went under contract on my second rental today and looking for reassurance that i'm getting an ok deal. It's a 3br/1.5ba within 2 minutes from downtown (arlington) for $64k. After all the expenses it will cash flow $192/month. I'm having it inspected this week but when I looked at it last week it seemed to be in tip top shape. Couldn't find much wrong with it and looked good inside and out. After running numbers in BP calculator this deal gives me 9% pro forma cap rate and 14.4% COCR.
Thoughts?