Question

6 Replies

If a property sell price is 48,000 how much cash in hand should I have yearly. Is there a certain percentage I should have?

In Georgia, I would plan on rents of approximately $700-$750 for that sale price.

@Demetrius Gatling  You're question requires more information.  Cash in hand for what?  Reserves for maintenance, improvements, down payment?  

Also, I don't know how many new people join Biggerpockets each day, but I think it's hundreds.  If you really want a good response, then you need a more descriptive subject.  "How much cash is enough for reserves?"  is an example.  

Last but not least, there's a beginner guide to investing on Biggerpockets (BP).  It will answer a lot of questions.  All new investors should read it.  Very good info.  

Best of luck to you!

Rick

@Rick Baggenstoss hey my question was If i purchase a single family home sell cost 48,000 how much cashflow should that property bring yearly on average. The location is a small city one middle and high school, nice neighborhood in south Ga.

For 48K, if you get a minimum rent of 1% of purchase price, you are ok. 2% good. 3% YOU ROCK !!!.

Look for rentals in that area. I would compare data from craigslist, rentometer, zilpy, zillow and trulia. Get the Average from all the above sites.

With 20% down, Insurance, property tax and 10% for property management, are you getting atleast a minimum of $100. Set aside cash for repairs.

@Demetrius Gatling  $48k is probably a lot of house in Thomaston.  I imagine your cash flow can be good.  Appreciation very low.   I'd be going for 2%+ there.  

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