What is your minimum investment criteria when analyzing a deal

[Nate Wilson]

I have been actively looking for a multifamily in the Manchester Nh area and feel pretty confident (I think!) on analyzing properties. I listened to Scott Trench audiobook book Set For Life, it suggested that if you can't get better than 10% return you are better off investing in the index fund. When I analyzing deals I am focused on cash on cash return. I am curious to what are the minimum investment criteria REI look for.

[Nate Wilson]

Originally posted by @Gabriel Edgar:

@Nate Wilson cash on cash return isn’t the only thing to evaluate, although it’s a good benchmark.

If you're using opm for a down payment and other costs, you'd have an infinite ROI, which is good. However a $1 return after paying all the bills with no money out on a quarter million property may be a huge hassle and not worth it.

My goals as I look at analyzing would be what’s the least amount of money I can be in debt, while cash flowing the most until I replace my income, after I replace my income, my strategy will change.

When looking into the life cycle of real estate, if it makes the same as stock market, you may be better off if structured right because of the tax advantages, equity, cash flow after pay off etc.

TL;DR= in my opinion cash flow is more important than COC, and it is possible to have an infinite return.

 All great thoughts and I agree with you. My strategy is to purchase through an llc and commercial loans need a 20% DP. So getting into a RE with next to nothing is very difficult with commercial lending.