What’s a good cash on cash return
Hey everyone, I'm a super rookie in real estate investing. I've been house hacking my first property for the past 3 years and I'm finally in the process of fully renting that out. Now I have my eyes set on short term rentals and I'm trying to figure out how best to approach it. Right now I mainly want to learn the underwriting process and what a good cash on cash return is for STR in todays market. If anyone could provide some insight on that or suggest some resources I could use I would greatly appreciate it.
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Previously I looked for 30%, in this market I'm around 20-25%. It also depends on what I'm looking to add to my portfolio. Territory, quality of property, etc. I might be willing to accept a lower ROI because I'm satisfying other goals on rounding out my portfolio.