The number behind using Sub2 to acquire rental properties

General Real Estate Investing
1

Hi all,
I agree with a previous poster - there’s not been much discussion on Sub2s lately. So here’s a new question :biggrin

What is your minimum spread between what a house will rent for and the PITI you’re on the hook for? I know about the 50% rule and that’d be a really sweet deal in my area. Any other info you need to answer the question? The rents are strong in my area and houses rent very quickly.

Also, when using Sub2s to acquire rentals what is your criteria for the house? age, condition, etc

2

I guess it depends on how much cash flow do you want for yourself? are you ok with $100? $200? $300? what’s the minimum you are willing to receive each month?

there has to be either cash flow or equity… if there isn’t any equity and the property needs $50k in repairs, i might pass on that one.

On the other hand if it has NO equity, no repairs needed, and cash flows $500 a month. i would be interested in that.