Wholesale for Rental Cash Buyers

2 Replies

I am using the calculator to analyze wholesale for a rental. What is the formula cash buyers are looking for in terms of ROI and/or equity? I have found some properties online that seem close on the numbers, but I am only guessing with an ROI set at 10%.

Thanks

Jason,

When you divide the the total cash flow for the year (after expenses) into the purchase price you will get your Annual ROI. I sell re-performing notes and once I get them re-performing I usually offer them for sale at a 10%-15% ROI.

I hope that helps

Originally posted by @Don DeMarco :

Jason,

When you divide the the total cash flow for the year (after expenses) into the purchase price you will get your Annual ROI. I sell re-performing notes and once I get them re-performing I usually offer them for sale at a 10%-15% ROI.

I hope that helps

 I divide the total annual net cash flow by the amount I plan to invest in the property, considering there may be leverage involved. This means that you may not want to use the purchase price since that is probably not the actual amount of money you have contributed to the investment. 

Bob Malecki