CalculateRealEstateROI

Strategy

Cash Flow Investing

Investment approach prioritizing monthly net rental income over appreciation, typically in mid-tier Sun Belt and Midwest markets.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Core concepts

Yield discipline

Target 8–12% cash-on-cash with stress-tested reserves.

Market selection

Population growth + job diversification + landlord-friendly law + entry price under replacement cost.

Operational depth

Class B/C properties demand professional management to deliver projected returns.

Examples

  • Indianapolis SFR portfolio at $130–160k entry, $1,400 rent, $350/mo cash flow.

Practical applications

  • FIRE-path investors.
  • Self-employed seeking income replacement.
  • Retirement income substitutes for SS or pension.

Common mistakes

  • Buying tertiary markets just for cap rate.
  • Ignoring landlord-tenant law before entering a state.