Post
Topic
Board Off-topic
Re: Rental Property Investment Analysis
by
amencon
on 24/09/2012, 14:56:45 UTC
I own some rental property and actually have been actively looking to acquire more very recently.  Your spreadsheet looks pretty thorough (the one I made for myself was a bit less detailed so I might steal this one in the future, thanks!).

According to my own experiences for ~100k properties you will want at least $1500 in rent revenue to cash flow well.  Properties around 150k should gross 2000+ at least.

For me what counts is that the property will still cash flow even after HOA, warranty and property management fees since the idea is to grab many of these to generate passive income without sucking up too much of your time.  You can oversee a lot of properties that all make you money easily if they are all managed by a professional, however managing even a single property on your own can potentially suck up a lot of your time and be a big headache not to mention liability.

In my area while there may be some single family homes that would fit the above criteria they wouldn't cash flow much.  The real winners are 4plex multi-family units for this (and more units if you can qualify for a commercial loan).  I would strongly recommend you look at affordable 4plex properties in the area and run the numbers on them.

About 1.5 years ago I bought a 4plex for under 100k and am renting each unit out for around 600.  Those types of deals have dried up quick in my area but it looks like I can get a similar property now for 130-150k ish which would still be decently profitable.

Good luck man.