What is a good return /Income from a given investment?

Question

Are there any published or known numbers for what constitutes a "good" return on an investment? I have not seen this info anywhere. I have bewen studying IRR=Internal Rate of Return, and MIRR = Modified Rate of Return. Which is super helpful, Now I am curious what is seen as a good investment return? What number do you use to know somehting is worthwhile to pursue or not?

How do investers compare their investment possibilities if this info is not available?

Will G. · Answer

The answer is a moving target thanks to the financial engineering of the fed. They constantly change the value of money, so we are all left guessing= frustrating for r.e. folks. The last 10 years or so of 0% interest meant cheap money for all sorts of stupid investments, and I GUARANTEE, we will see  who is wearing pants as the tide goes out and the money gods "allow" interest rates to move toward a "market rate, or what they should be. The tsunami of cheap money is simply a way of consuming future productivity here and now and we will have to pay. Now that i got the rant out of my system , i believe most would  look to the 10 year treasury as the benchmark for what is considered a good return. For the last decade it has been negligible in return which is why cap rates for instance have been at historic lows.

With 10 year treasury@ around 3%,  would you do toilets and tenants for 1% (4% cap rate) with no upside potential down the road, (because cap rates are likely to revert back to historic norms)?

LOTS AND LOTS of mal investments have occurred the last few years , within many sectors, all due to the super cheap money available, especially by institutional investors.

So a worth while deal today will have to pass a stress test of higher cap rates at resell, slightly higher vacancies, and cost of credit rising, and better yet it being something that you can add value to, which will insulate against the future conditions