How to Get Good Cash on Cash ROI (CCR)

[John Vu]

Hi All,

Is it just me, or is it super hard finding "good" Cash on Cash ROI?

I am reading older posts and I see the consensus is that 10-12% is considered good CCR. But I am also seeing a lot of people on here saying they have properties that are 15%, 20%, 25% CCR. I look at that and I feel like I am doing something wrong.

I am looking in the Denver market since I live here and have been analayzing hundreds of deals. I am LUCKY if I find a deal for 6-8% CCR, it's really hard to come by. Usually I can manipulate numbers to maybe get 11-12% but again, it's rare.

How are all of you on here getting such awesome deals? Is it the Denver Market maybe? Is it me?

- Thank you

[Frank Wong]

Hi John,

Markets change and you can't compare what people got in the past.  I agree with Ned.  A lot of the times new investors have no idea what areas to look for and what type of properties would be good investments.  Right off the bat, they are at a disadvantage.  

Yes, the deals are harder to come by. They have more competition and very few available. I can tell you they still exist. I closed on a deal today. SFR in TX meets more than 1% rule after my light remodel I will be doing. Property located in a B+ area. You have to have a game plan and know what a good deal is. For this property its not like I am making a killing off of it. After I am done with the work I probably created $25k in equity.

I agree with Dennis, the min should be $200 per property if you are financing.  For me personally, I buy homes cash but if I were to finance I am looking for $500 min.