Expected Cash On Cash Return - Buy And Hold

[Chris S.]

Hey guys, quick question for a buy and hold.

If you had $100,000 cash, after buying properties, how much would you expect to produce with that per year? For example,  25% cash on cash return? 

I'd imagine that the more you know, the better cash on cash return you could get.

Is there a difference in cash on cash return if you start out with $10,000 vs $100,000?

I'm really just looking at what to expect from real estate and any ideas, advice you can give on buy and holds.

Thanks for your help on this!

[Jon Holdman]

I look for a 10% minimum cash on cash return on rental investments.  That's impossible to achieve in many areas, low in some.  I don't do anything creative or tricky.  Locally I would self manage.  Remotely you're stuck with property management, which hurts your returns and introduces a different set of problems.

Fix and flipping, wholesaling, and any other form of buying and selling are, IMHO, not investing.  They're businesses.  They involve not only cash but also a willingness to invest the significant amount of time required to run the business.