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Here is a deal I did last week!
In Denver (If you want the address plese send a personal message)
Appraised Value 169,000.00
Repairs needed 0.00
my purcahse price 122,500.00
cash I brought to closing 1,421.56
Check payable R.E.O. Consultants recived at closing
$46,039
Monthly mortgage $1,125.00
Monthly Rent (already rented) $1,200.00
I pay water and Trash! so I am at a negative of $4.98 per month but I got $46,039.00 back at closing so divide 4.98 by 46,039.00 so that money will cover my negative cash flow for 9,244.77 months or the next 770.39 years after that I will need to raise the rent to cash flow!!LOL
lets run this another way to see how I could of cash flowed off this property
Appraised at 169,000
Purchase price 122,500
Repairs 0
Cash to closing 1,421.56
cash back 12,700.00
Owner carry 20% and dismiss at closing $33,800 (give or take)
80% loan to value no Mortgage insurance mortgage of $135,200 or 899.49 per month! Rent $1,200.00
CASH FLOW $300.51 minus trash and water
so right around $250.00
Question what is more important CASH FLOW and equity or working capital? It all depends on where you want to be!
THANK YOU FOR THE EASY POST!!! Copy Paste YEAH!!!
AND NO IT IS NOT REAL CASH MONEY! It is a cashiers check made payable to my company! LOL
I am disappointed REO. You forgot to discount your cash for future value. That means you won’t be able to carry the property for the full 770.39 years without raising the rent. However, I am pretty sure that you can carry it at least 25 
if you spend your money wisely.