Let me clarify. Your previous posts talk about utilizing the calculator before making a purchase to make sure you are buying smart. Setting a minimum of $100 after the purchase feels like it contradicts your original statement about buying smart. So, that is why I asked why set a minimum of $100?
$100 is a bench mark for when you are analyzing a property before purchase. Basically, if one analyzes a property and after factoring in all expected cost, its not going to cash flow more than $100 then it is best to move on and find a better deal.
Additionally, the cash on cash return will likely be poor if its bringing in less than $100 a month.
The answer was expressed in the blog. Well, atleast I hope it conveyed....lol.
In the end, one surprise cost that wasn't allocated for would eat up most of the measly $100 a month and profit would become nill.
Let me clarify. Your previous posts talk about utilizing the calculator before making a purchase to make sure you are buying smart. Setting a minimum of $100 after the purchase feels like it contradicts your original statement about buying smart. So, that is why I asked why set a minimum of $100?
$100 is a bench mark for when you are analyzing a property before purchase. Basically, if one analyzes a property and after factoring in all expected cost, its not going to cash flow more than $100 then it is best to move on and find a better deal.
Additionally, the cash on cash return will likely be poor if its bringing in less than $100 a month.