I came up with a new way to quickly evaluate if a deal will cashflow.

I call it the 10% Rule: if annual gross revenue is at least 10% of the financed amount (after putting 25% down) then it’ll most likely cashflow.

For example, $100k property (25% down), you do $75k * .10 = $7500 annual revenue (you need at least $625/month to cashflow).

Thoughts?