Is 8-12 % Cash-on-Cash Return Still Realistic in Today’s Interest Rate Environment?

[Cameron Richard]

Hey everyone, I’ve been digging into the BiggerPockets podcasts lately, and from what I’ve heard for buy and hold investing Dave often targets 8-12 % cash-on-cash returns on small multifamily deals, especially in more affordable markets.

I’m looking into small multifamily in a cheaper market like Des Moines, Iowa. But with interest rates being what they are now, I’m wondering if that 8-12 % CoC target is still realistic (after underwriting vacancy, repairs, CapEx, etc.)

Thanks in advance for sharing your experience.

[Greg Scott]

You can find deals that cashflow like that in ANY market, including today's market.  In some markets they are plentiful and in others rare. The real question is: how hard are they to find today?

I still see deals coming across my desk that will get this level of cashflow, but they are not beautiful properties listed on the MLS. You may need to look off-market or find that ugly, ugly property that needs a big uplift.