Real Estate Investor

[Richard P.]

I am new and want to start investing into real estate as an private investor for flipping house at first until I am able to build up cash for buy and hold type investments. I only have about 15k in savings and didn't see much improvement over the 10 years and would like to start investing into real estate since its a great way to earn cash on cash return.  What is the typical return for cash on cash, and what should I look out for? As in tips on contractual agreements, and other exit strategies for me, just in case the investment fails.

[Ned Carey]

@Richard P. welcome to BP.  There is no "Typical" cash on cash return. Some properties are higher risk and offer higher potential return. Some properties are less risky and offer a lower cash on cash return. Keep in mind that cash on cash is only part of your return, there is also mortgage pay down and appreciation. Sometimes low cash on cash return properties have greater appreciation. 

All that said, I would think most would be in the 8-12% range.