I am curious, what is your minimum monthly net cash flow for duplexes that you consider when making a purchase financing?
Mine is currently no less than 500 a month net. My only rental property (a duplex in lubbock tx) has a net cash flow of just over 700 a month, which I love.
For me there are more factors at play than just the net cash flow.
If I have to put up 20% on a $300k duplex to receive $500/month, I would pass. If I could get in the deal with $0 or very little out of pocket, then of course I would do it.
But your goals or objectives may be different. You may be trying to preserve capital in a lower risk investment and then it may be something for you to consider.
Thanks for the response Cameron. I agree, with each deal, there are many factors to consider than just net cash flow. I was just wanting some generalities from the crowd. I dont think I would ever do a deal for less than 500 a month net cash flow. Even 0 down.
But to be more specific I guess of where I am coming from. My price range for duplexes in lubbock are no more than 200k. 20 percent down. The duplex I own, I got for 112k, 15 percent down. It nets 700 a month. If I was to get a duplex for 300k, i would certainly want more than 500.
Are you talking about cash flow after setting aside 30% of rent each month to cover maintenance, vacancy, and property manager's cost?
Yes sir I am.
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