Updated over 3 years ago on . Most recent reply
Cash on Cash Rate of return?
What rate of return are most real estate investors looking for(COC)?
Lets say you have a 100k cash investment in a property, what net return are you expecting to get? For this instance, lets assume you are also getting a 3% increase in capital value each year, and your rate of return increases 3% each year. I know many markets where your COC return is going to be 3.5-4.5% and you will get a minimum appreciation rate of 3%. Would this market interest you, or is that falling short?
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#5 All Forums Contributor
- Plymouth, MI
Do you spend percentages? No. So don't base this question on an answer with a percentage in it. Percentages are a means to an end...with the end being numbers with dollar signs in front. Restate the question but finish it with what these percentages generate in dollars...and, you'll find the answer you are looking for is then based on how those dollars relate to how those dollars help you get closer to your financial goals.