Seeing that a rental property will produce cash flow isn’t enough. The amount of that cash flow is important too. It is even more important if you are not factoring in much for maintenance costs.
The Question is….
What is your Cash Flow Threshold?
This number will be different for everyone depending on the goals and risk appetite. There is one thing I can tell you though. There is definitely an absolute number you do not want to be below.
What is the minimum number? – $100 per month
If something is not going to cash flow at least $100 per month after you have allocated money for vacancy, maintenance and reserves, you are better off moving on to the next property. In the long run it will likely not make for a great investment.
For all the details, see the full blog post at:
https://scaredycatguide.com/rental-property-cash-flow-threshold/
Best Regards,
