Properties with min: 12% cash-on-cash return (at 80/20 leverage)
Searching for markets with properties that meet or exceed the following criteria:
- cash-on-cash return of at least 12%
- annual appreciation of at least inflation plus 2%-3%
- low crime area
- strong school system area
Above targets to be reached after provision for the budget assumptions below:
- 10% vacancy
- 10% of rent for property management fee
- 10% of rent for CAPEX
- 5%-10% of rent for general Operating Expenses
- 1%-3% of property value for insurance
- 1%-3% of property value for taxes
- 10% of rent for misc. expense retainer
- debt service on 80% leverage
Are my expectations unreasonable, or have you experienced/come across properties in locations where I could achieve these targets?
Look forward to the feedback! Please feel free to share agents/property managers/other “Core Four”-like team member’s info as you deem helpful.
Thank you!