What's a good CoC number?
Hi all,
Got a question for seasoned veterans around here. After reading some of the discussions, I'm not sure if I fully understand what makes a good CoC number. The numbers I see are around 20%, give or take some, which to me, seems out of reach.
Let's take a look at this hypothetical property (managed by PM)
Price: $90,000
Initial investment (DP, rehab, taxes, insurance, PM fee): $35,000
Estimated rent: $1,400
Cash flow after expenses (including PM fees): ~$420
CoC%: ~9.5%
Does this number look good? I'm working with a PM, and their CoC numbers are nowhere near 20%. Most are around 5% up to 10%. I must be missing something :)