What profit margin/min. net profit needed for sucessful flipping or rentals?

I’m new and would appreciate some advice. Is $500 month net profit worth taking a loan out on a multi-unit? Is it best to start with sheriff sales


Your question is a little vague. What do you mean when you say $500 per month net profit and how many units are in your multi-unit building? The vast majority of new investors have no idea how to calculate cash flow. Lack of cash flow is the number one reason that new investors (and all other new business owners) fail. I will generally buy a multi-unit apartment building if I can get a positive cash flow of $100/unit/month USING REAL WORLD EXPENSE NUMBERS. I also require a minimum of 30% equity at closing.

I do not recommend sheriff sales for beginners. Sheriff sales can be VERY tricky and can be a DISASTER if you don’t completely understand them.

Good Luck,


How do you calculate cashflow on poperties?

You should do a search of cash flow at the top of this page. There is a huge amount of information in the archives. Basically, NOI - debt service = cash flow.



You always say you will not buy unless the rent is twice the mortgage,. So if gross rent is $2000, mortgage needs to be $1000 tops. $100 a month cashflow should be higher than that?? Just wondering…

Also I think the $100 is gone these days. Back in the 80;s we looked for $100. Now its more like $250 a unit, unless you have a larger complex like 20+ units where $100 is good cashflow overall…