Hello Bigger Pockets Investors!
I know my question is dependent on countless variables but I was wondering if there is a General ROI investors are looking for in the North Carolina area. Even a ballpark number would help me greatly. Thank you and happy investing.
I'm not in NC, @William Boeklen , but I like to see $150-200/month/unit in cash flow and a CoC ROI in the mid-teens or better.
@William Boeklen I'm assuming you're looking for an ROI for Charlotte (where you're located) correct? The market (and expectations) in Charlotte will be VERY different from Raleigh, which is also very different from Greensboro, and miles away from Caswell County.
@William Boeklen I like my ROI to be in the hundreds or thousands. I've been able to do that in Arizona using the BRRRLO model and now my partner and I are looking to duplicate that in the Traid area of North Carolina.
@Jaysen Medhurst Any information helps, thanks for the response Jaysen.
@Justin Kay Justin, I will be located in Charlotte but I am also trying to get the most knowledge on the surrounding markets to best increase my chance on finding a good wholesale opportunity. Thank you for bringing this to my attention I will surely look more into the range of investors desired ROI.
@William Boeklen CoC ROI is generally going to be in the 13%+ range if you're looking to purchase a standard rental with maybe 20-25% down. At least that's in the Triad area where I primarily focus.This can vary widely of course depending on what the investor and seller needs out of the deal. You can use seller financing (in the middle of two currently) where I'm getting a 35% return on the cash I put into the deal. I'm not in the hundreds or thousands ROI category like @Shiloh Lundahl but it's only a matter of time ; ) If you're not putting too much of your own cash into the deal it's easier to get that ROI number way up. Which is ultimately what you want to do. Good luck!
@Shiloh Lundahl Thank you for the response Shiloh. I wish the best of luck to you in your new journey through North Carolina! Is there a particular market you are looking at?
@Jason Coleman Jason, this information was extremely helpful. Thank you for bringing me some numbers to work with I greatly appreciate this. Have a great day and happy investing!
For Fix & Flips in my area and surrounding:
We like to see a minimum of 22% return on our Investment. I have yet to hit that low in my return but I have also put more sweat equity then most do. I just completed my first year in investments.
Rentals: I agree with the comment above, I prefer to see $150-200 cash flow monthly per unit.
@William Boeklen good question. I often wonder what that would be as well. I am sure you have read or watch videos saying what's a good or bad RIO. I look at the ROI and how long will it take to get my cash invested back in full if it's a buy and hold investment
@Shiloh Lundahl agreed. That's why I only do turnaround deals which offer my investors extremely high returns.
On a cash deal minimum 8%
Cash on cash with debt would be 12%
This would be absolute minimum but must be in an area that has potential to appreciate
If it's just straight up cash flow then I would seek minimum 18% cash on cash
@Jordan Wilkinson Jordan, thank you for this information. Best of luck in your next deal.
@Hai Loc Hai, thank you for the response and the numbers I really appreciate it.
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