Updated over 6 years ago on . Most recent reply
How flexible should you be on ROI for your first investment?
For my first buy and hold property I am trying to find something with 6-8% cash on cash ROI. That seems like it should be fairly doable, but there are a lot of opportunities I've seen that would generate around 4-5% ROI. I'm wondering if I should be more flexible and consider some of the lower ones, since I have not even been taking into account the ROI from debt pay down in my calculations.
I really want to get started with something because I'm afraid I will get analysis paralysis if I shoot too high for my first property.
What are your thoughts? What would you recommend for a cash on cash ROI goal for a newbie's first property?
Most Popular Reply
#5 All Forums Contributor
- Plymouth, MI
No, no and NO! Never negotiate against yourself.
You're focusing on the wrong thing. Stop focusing on getting your first deal, or all you're going to get is your first property. They're not the same thing. If your son/daughter came to you and asked you if it was OK to accept a "C" for a grade in their first class in High School, because they were in a hurry to get it over with, what would your response be to the?
Your goal isn't to accumulate properties...it's to accumulate deals.
You don't get a second chance, to establish your starting point with your funds.