What are your returns on your rentals?

9 Replies

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?

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

@Jason C. nope.  My new purchases are higher returns because the first couple I did was turnkey.  

Now my purchase price is lower, interest rate is higher though.  So it almost evens out but still higher then turnkey was for me a year ago. 

@Jason C. What market you currently invest in? Houses in Upstate New York - 10/11% cap rate Doubles in the same area - 14/15% cap Cleveland heights , south Euclid - around 10% Detroit - 10% Condo apartments in Florida - 7/8% cap rate Hope I could help:-)
@Jason C. It depends if you are including maintenance vacancy and capEx, or if you are using the 50% rule. I would say the deals are not dropping on return rate unless you are looking at the same area, out of state investing etc.
I’m using cash on cash for my return analysis and my turnovers aren’t that often. I’m not including random expenses but that could lower it by 1% maybe 2%. I’m operating in the south east. Rental growth has been strong so that keeps me buying so I guess it’s offsetting the higher prices and rates but I feel like I’m pushing the rents in my market. I haven’t felt that feeling before.

@Jason C. Detroit has the best returns period.looking to connect with professional/serious investors My Track Record here https://docs.google.com/spreadsheets/d/1_b5hu-UrEBU2i1nTZJlYNce5-H8N1MsuSi83yK2rOX0/edit?usp=sharing

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