Posted by speednxs on March 10, 2006 at 20:27:00:
Break even or positive cash flow would be a fantasy. A simple rule of thumb is monthly rents that equals 1% of the purchase price. If you could find a $400,000 house it is unlikely that it will rent for $4,000 a month. The more accurate way to do this is to calculate Net Operating Income (NOI) and CAPitalization rate. Try Google.