Initial Cash on Cash Return

[Andrew Balogh]

Hey guys,

Just wondering what a good initial cash on cash return would be for a buy and hold investor (for year 1)? I have been analyzing rental properties in my area and the BiggerPockets calculator has been showing cash on cash return on investment between 2% and 4%, which I found to be quite low. What kind of threshold do you guys use for this COCRoi metric when deciding whether you have a good deal or not?

Thanks for the help in advance,

Andrew