I was wanting to get some opinions on what the goals are of the more experienced investors with regard to how much cashflow you expect? what is considered a good deal vs. a great deal. Thanks!
The answer to your question is tied up in the goals of the investor. A highly leveraged investor may be looking for large appreciation and the cash flow is needed to continue holding the property while it appreciates. Monthly cash flow may fluctuate wildly depending upon tax bill and insurance due dates, as well as, repairs, turn-overs and vacancies.
If an investor is looking for rent producing cash flow to live on, it may be less exciting to put up more down payment since the percentage cash flow fluctuations are smaller.
At times I have used mixed strageties involving purchase of multiple properties where a high cash producing property is owned free and clear and the income supports a highly appreciating collection of properties acquired with little down payment.
I am not as experienced as many on this board but I look for $200 cashflow per unit. Some others might have a different opinion.
pstabile,
The answer to your question is tied up in the goals of the investor. A highly leveraged investor may be looking for large appreciation and the cash flow is needed to continue holding the property while it appreciates. Monthly cash flow may fluctuate wildly depending upon tax bill and insurance due dates, as well as, repairs, turn-overs and vacancies.
If an investor is looking for rent producing cash flow to live on, it may be less exciting to put up more down payment since the percentage cash flow fluctuations are smaller.
At times I have used mixed strageties involving purchase of multiple properties where a high cash producing property is owned free and clear and the income supports a highly appreciating collection of properties acquired with little down payment.
Thanks for the responses all. I appreciate the feedback.
No, you cannot, unless the renter is handicapped or you get a waiver, I believe.
And I also think that how close of a relative they are matters, too...
In CA, you cannot.