All Forum Posts by: Joshua Rouse

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $145,000
Cash invested: $7,500

Personal residence. Considering doing a live in flip or brrrr.

How did you finance this deal?

Conventional

I don't have much experience so my word might not be worth much but have you heard of the 1% rule? It's a good general rule-of-thumb that an investment property will have positive cash flow if it rents at 1% of the total cost to buy the house. This means that if you are able to rent out both apartments and receive $1,200 per month, it should cash-flow positively. However, due to zoning it may be difficult to rent out both apartments. Also with it being an old house, you may get into some difficult situations with maintenance. Lastly, if it is already updated and in rural Indiana, there is a good chance that you won't get much appreciation on it anytime soon.

If I were in your position, I would keep looking. If you've not heard of the BRRRR strategy, I would look into that. You won't see much cash-flow from a single family home so appreciation is key.