What Is A Good Cash Flow Amount in Memphis, TN

[Frankie Torres]

***SOS*** Hey everyone, I submitted an offer on a buy and hold, and just found out the rents are lower than what I ran the numbers with. Is $90 / month still a decent cash flow? Rents for $890 - $950

This is my first time buying a rental property. Any advice or constructive criticism would be greatly appreciated!

[Reid Chauvin]

Hi @Frankie Torres - it depends on if your cash flow calculation is considering future maintenance/expenses and vacancies, as well as how much are paying upfront. It also depends on how long you hope to hold the property for and whether or not the property has a good chance of appreciating at a reasonable rate. 

If it's an investment, then you will want to have a good idea and be comfortable with the time frame in which it will take to recoup your upfront investment.