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Real Estate Deal Analysis & Advice

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Travis Washington
  • Rental Property Investor
  • Austin, TX
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89
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50% Rule Cash Flow Guideline

Travis Washington
  • Rental Property Investor
  • Austin, TX
Posted Jun 11 2015, 02:15

Hello BP!

So, what is your Cash Flow number you like to see after applying the 50% rule (and subtracting mortgage payments) to motivate you to move forward or lock down a deal?

IE: a place renting at $800 with a mortgage payment of $200.
$800*.5=$400 (50% Rule)
$400-$200=$200 (Cash Flow after 50% Rule and Mortgage payment)

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