Good location but low Coc ROI
I am new to investing and still learning on how to appropriately analyze a property without spending too much time altering the numbers to make it worth investing. I found a property near a university, good location which I am familiar with. I am not cash flowing much and it has a low CoC ROI. Will you take a lower CoC if in a good location? If so, how low is too low? Am I putting too much emphasis on this value?
I assume you are in Central FL, as am I. I'd be happy to connect and tell you what we look for in our rentals, but ultimately every investor has their own strategy. Feel free to message me if you want to connect further.
@Melissa Deacon I think it really depends on what your goals are for the next 3-5 or even possibly 10 years. Are you looking for an equity play that will, over time, result in cashflow? Are you looking to add to your cash flow in the near term with less concern over equity/net worth?
If I had a better sense of your goals, I could provide better guidance.
Message me anytime if you would like to chat!
@Melissa Deacon, cash flow pays the bills, appreciation builds wealth. As others have noted, it depends on your current financial position, long-term goals, intended purchase price of the property, down payment, condition of the property, future rent projections, etc. It's ill-advised to speculate, but if interest rates fall over the next couple of years you do have the option to refinance which would increase your cash flow. How long have you been looking to buy an investment? More often than not, it's better to park your capital in real estate than leave it in the bank. If you plan to hold long-term, then it could be worth pursuing.