Should I look at cashflow or market?

**Reeveso** · 11-28-2006, 03:00 PM

Hey I have a quick question..

There are a few 3-4 plexes in my area that are really cheap from my understanding so my question is...should I really even care about the market right now if i'm only looking for cashflow?

I don't care right now about flipping properties or any kind of "lump cash" b/c I want to get a few apartments before I graduate college in 1.5 years so I won't have to worry about any type of cashflow issues when I get my own house and all that stuff

I plan on holding the first few I get for AT LEAST 10 years...probably until the market shoots up again since its startin to gettin low again now

**Rusty** · 11-29-2006, 07:39 AM

Cashflow is a great way to go, but make sure you've considered everything. Taxes, maintenance, turnover, marketing, etc.

Also need to try to figure out the market for your plexes. Prolonged vacancies will eat away profits quickly, and if you can't afford short-term losses, it could be dangerous.

**Reeveso** · 11-29-2006, 07:46 AM

Well from very rough estimates I would have between 500-600 monthly left over after taxes/insurance and a mortgage payment

I'm very good with money, plus this is my first building so i'd be nervous..which means i'd probably just stash 90-100% of the money into my savings for maintenance, marketing, vacancies, etc.

After a few months I would probably then use that money I had saved away for a down payment on another apartment building..and thus the snowball begins

Anyway...where can I find information about the market in my area? (vacancy rate and things like that)...would that be by just talking to professionals in the area?