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Connor Rice
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LOW CASH FLOW BUT AMAZING COC. WORTH IT?

Connor Rice
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*This link comes directly from our calculators, based on information input by the member who posted.

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Reece Iovine
  • Realtor
  • Columbus, OH
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Reece Iovine
  • Realtor
  • Columbus, OH
Replied

I agree with @Steven Foster Wilson, another thing I like to look at is the over all dollar amount of cashflow not just the coc percent.

If you do an owner occupant low down loan you might have 30% coc because you have such little money in the deal, however your actual cashflow is only say 100 dollars on a duplex.

This might still be a great deal but I'd be careful, what if the market tanks and you need to drop rents 100 bucks a side to get the deal leased up. Now you are negative cashflow.


On an ideal value add deal I look to have profirma cashflow of 15% or more and $250 per unit. But this won't be the same for all markets its just a safety thing I keep an eye on. 

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