Investor · Northern Virginia · Member since 2020 · 14 posts · 4 votes
Hi All,
Beginner investor here - reading and listening mode for now. What is considered a good Cash on Cash ROI for the BRRR strategy or is the right number for this also falls into the category of "no one size fits all". I ask because I was running numbers on a demi-detached here in MD and although the cash flow made sense to me (50% of total amount) but the cash on cash ROI was not in double digits. I recall from one of the webinars that Brandon Turner did that looks for 10-12%.
I would appreciate any insights into this AND if this has been answered already in one of the forums then I would appreciate you pointing me out to that. My next read is David Greene's book on BRRR.
If a BRRRR goes all to plan, @Mateen Qureshi, the CoC ROI is infinite because there's a return of all equity at refinance. With a normal buy-and-hold property I look for at least $150/unit/month cash flow and 13%+ CoC ROI.