What are your returns on your rentals?

[Jason C.]

I just went under contract for rental property number 7 and I’m projecting my return on invest to be 11.7% on a yearly basis. While I’m happy with this return it was below my average return of 17% on my previous 6 rentals. Number 6 returns me 15% and was purchsed only 10 months ago. It’s obvious that we are in a difficult market, but deals can still be found, even though the returns are less and less. What are your average returns and do you see them lowering on newer purchases?

[Caleb Heimsoth]

I’m around 10-13 percent CoC returns. If you include debt paydown/appreciation it’s more. I personally include the debt paydown but not the appreciation, which usually makes it closer to 15 percent