What is a fair COC return to target for a passive investor

[Sean Dezoysa]

Hi all,

On the Toledo forum I mentioned hoping for a 10% cash on cash return for turnkeys and several people said that's too low for Toledo. That's always good to hear.

Plans have changed a bit and I think I now prefer to deal scout the MLS with an investor friendly agent, then giving her local management duties while I do my part remotely in terms of marketing vacancies, payment handling, repair requests etc.

What range would you guys target as a cash on cash return for C/B properties that are reasonble MLS deals but nothing stellar? Bank financing 75-80% loan to value.

Maybe 12% cash on cash return, up to 15% max? Putting 20k down that would be $2,400 to $3,000/yr in net cash flow. Seems like a pretty high amount to me, I'll take it if it's sensible though!