If I purchase a property for $425k, put $100k down, how much income would the property need to generate per month as a temporary rental to cash flow?

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Go to bigger pockets. Use their free calculators to figure this out. Then, come back and ask actual pointed questions.

You should not be buying real estate if you can’t even figure out your potential cash flow based on market assumptions. You would be putting yourself in a position to fail.

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Before I even look at properties to buy, I look at recently rented units in the neighborhoods I’m considering purchasing in. Based of the recently rented units I can get an idea of how much people are willing to pay. You can easily filter for number of bedrooms and look at the listing to see what condition those properties are in. This will also give you an idea of any repairs you might have to make to meet the quality standards of the neighborhood to get top rent.

This is my first step in any property I look at. The reason being, unless you property has some legit differentiator, it is very unlikely that you can just increase rent significantly above market. Basing your rent off the expenses sounds good, but it can put you in a situation where you are scrambling to find a tenant that is willing to pay above market, which will lead to higher vacancies (which is the true killer in this game we play).

helpful

You should approach this the other way around.

Figure out what a house will rent for, based on comps. From there, figure out how much you need to put into the house to make it rent at that amount. From there, figure out how much you need to buy it for to hit the numbers you want.

If a house doesn’t cashflow based on the sale price, the biggest lever you have to pull to squeeze more cashflow out of it is the sale price.

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This is the way

We’d have to know a lot of information beyond purchase price. What are the taxes, homeowners insurance, estimated utilities, condition of the property for maintenance needs, etc. You’d also have to know rate for the P&I.

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Buying real estate itself will take up a lot of cash flow. In the current global economy and the Russia-Ukraine war, inflation is not good for real estate investment. I think you can be patient and wait. Making short-term stable investments can not only protect cash flow but also Can bring some stable income.

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Assume like everything they have to buy in Australia from scratch

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