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Updated over 8 years ago on . Most recent reply

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18
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3
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Adam Delort
  • Real Estate Agent
  • South Elgin, IL
3
Votes |
18
Posts

Appealing Cash on Cash Return

Adam Delort
  • Real Estate Agent
  • South Elgin, IL
Posted

Hey guys, im digging into annalying some deals. What is the typical cash on cash return that you would say is appealing enough to move forward with? Also what typically are you putting into your monthly expenses to calculate this all?

For not i am inputting the mortgage payment with interest, taxes, insurance, association dues if present, and vacancy (at 7%) and repairs at 5%.... are those percentages high?

Most of the deals im analying are coming in 6-7% cash on cash return (all my expenses including down payment, inital repairs, and closing costs)

Adam

Most Popular Reply

User Stats

1,696
Posts
2,161
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Peter Tverdov
  • Real Estate Broker
  • New Brunswick, NJ
2,161
Votes |
1,696
Posts
Peter Tverdov
  • Real Estate Broker
  • New Brunswick, NJ
Replied

For me personally,it has to be 15% or greater. I like to see it in the 20s. I wouldn't recommend someone participate in real estate if they're getting a single digit return. You can get a 7% return with a REIT, mutual fund, etc and they don't call/text you to complain about silly things.

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Pete Tverdov
4.8 stars
260 Reviews

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