What is a good COC% for New Investor

[Lauren Joffe]

Hello Everyone,

I am just starting out and looking into buying small multifamily properties. I found a potential property in Arlington Texas that I could use the BRRR method, however after putting aside for, maintenance, vacancy, and capex I only come out with 5.65% COC. Is that a good percentage if not, what percentage should a newbie be aiming for.

Thank you in advance!

[Jason D.]

If you can time it right, buying for appreciation is OK. Personally, I look for cash flow first, because my goal is to replace my income with cash flow, but everyone has different goals. So my math says that you are putting $40k in this deal to make $190 per month? I would not tie up that much cash for that deal, but like I said, different goals.