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.
typical positive cashflow breakdown… - Posted by InvestmentKid
Posted by InvestmentKid on March 10, 2006 at 14:06:23:
can anyone give me a good breakdown on what a good cashflow (price per home: cashflow) in california would be? or if you can give me any advice on that, it would be highly appreciated.
Re: typical positive cashflow breakdown… - Posted by Mary (CA)
Posted by Mary (CA) on March 14, 2006 at 13:04:25:
I’ve found only 1 area and 1 type of property that you can easily cashflow in CA and it’s not normal RE. (mobile homes on lots in depressed recreational areas. . . but you still have to buy right).
Unless you get a stupendous deal on the RE, it’s unlikely that a SFR or a small apartment complex will cash flow here at this point.
Mary
N. Calif