How much cash to cash return is good to you?

6 Replies

How much cash to cash return is good to you?

Infanite!  Get all your cash back...  If not I shoot for 25+%. Not hard with low down owner occupied multifamily. I know this would be hard without low down payments though. 

25% down 25% return.  Personally I dont waste time with anything under 10%.  20% and above is go time.  This can be hard to do.  You have to bring alot of value to your tenants to get those kinds of rents around here or get a real deal of a unit or otherwise add value to the property without injecting a ton of cash. Under 10 to 15% and other investments look like alot less work for nearly the same return.  Good luck!

I like 15-25% but have been okay with 10% , 15% when principle pay down is counted. We buy class a homes, so they are higher end and make less return!

I like @Joshua D.  answer best...infinite.  If I don't get all my cash back within the 1st year, I made a mistake on my deal.

I'm investing more passively as I work full time and have a family... that said, I target a minimum of 15%... my goal is to get at least 1.5% of purchase price in rents.

I like 30% returns, but I would want at least 20% returns per yr.  In my area this is easier to obtain.  Someone I know just signed a contract yesterday for a cbs house for 19 k should rent out for 600-750 per mth

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