is there a target price where properties cash flow? or max? say $50,000 houses v

Bird Dogs, Wholesaling
1

is there a target price where properties cash flow? or max? say $50,000 houses vs 125,000 or 150,000 ,would that be a good rental for a landlord or only cheap house like $60,000 and less?

2

Short answer…No

Houses cash flow based on rent vrs. expenses.

IF rent > SUM {expenses}
rent - SUM{expenses} = cashflow
ELSE
SUM{expenses} - rent = loss
ENDIF

“Generally” lower priced houses are easier to cash flow since rents do not (at least in my area) rise proportionately with price. Each property is specific. You need to know ALL the financial details surrounding the property to determine if the property will cash flow.

jmd_forest

3

so there is no perfect price in the usa of a house that cash flows…$30,000 or 130,000…house?

4

jmd- r u a prorammer? That little equation you wrote took me back to my Visual Basic class in college. Man I hated that class!! :beer

5

Yes, there is a target price, but it is not nationwide. It isn’t even citywide. It is neighborhoodwide, or maybe even blockwide.

You must do a study to see what rents are and what quality of house brings that rent. Then you have some idea of what you can pay for a rental property.

Look at it this way: what rent can you get for a 3 bedroom, 2 bath, nationwide? Oh yeah, rent varies by location. Well, so does the price you can pay for a rental.

Besides the going rent, you must learn what the average sales price is. There are a few locations where fair market value is a small fraction of the price you would pay if you only based your offer on what the rents were going for.

6

I am currently a full time investor/landlord/rehabber. Previously, I was a partner in an engineering services firm that did a lot of highly specialized programming. I loved the programming and engineering. Programing provides instant gratification.

jmd_forest