Minimum Return on Investment

[Paul Hansen]

What is a "fair" return on investment for a Flip or a Buy & Hold (for rent) in New York City, just generally speaking based on all the investment strategies out there. I know there are numerous factors and scenarios. I had an investor today tell me that he'll consider anything above 3%. That seems low, but probably more realistics than ~10% right?

[Scott Wolf]

For a buy and hold investor, anything above a 3% Cap Rate is considered an acceptable return in NYC, as people buy and hold to have the appreciation, and it is almost like buying real estate as a bond (safe & stable investment).  As for a flip, I cannot speak to returns that they are looking for, as it is not what I do.