Just wondering at what point does owning rental properties become profitable from a monthly cashflow standpoint. When analyzing properties are investors looking at fully mortgaging a property (100%) from a numbers standpoint or are they figuring that any cashflow is a return on their downpayment? I'm looking at a few properties and obviously the numbers look better to me when doing calculations if say a property is selling for 100K and I use the 80K mortgage(20%)down for my calculations. Just say the property is a single family home and mortgage for the 80K would be $400, taxes $100 and insurance $100, for a total of $600. Says it is renting for $750/month that would leave $150 cashflow/month for me. Would this be an ok return? Or since I have 20K downpayment, closing costs, and any repairs that need to be done this would eat up my cashflow and only be a return on my downpayment?
Thanks
Jim
Thanks
Jim