All Forum Posts by: Brian M.

I am new to investing and plan on buying my first residential multi family property late this year. I am 23 and want to build a portfolio using a long term buy and hold strategy. By year 30, the majority of my investment properties will be paid off, I will take equity out of the properties if needed and will pass my portfolio to my future family. 

With a long term buy and hold strategy: does having a negative CoC return matter if the 5 year annualized return is approximately 15%, 30 year is approximately 10% and there is significant net cash flow starting in year 20?

Thanks for replying  Brad. Your answer makes a lot of sense. The possible long term goal, for the individuals that are exploring this, is a 20 year buy and hold strategy focused on acquisition and growth the first 10 years as opposed to immediate cash flow which would be a plus but not the driver of strategy. They are in their late 20s and employed. The first 5 years will focus on residential multifamily properties. Years 5-10 will focus on expanding into small commercial apartment buildings. Years 10+ will focus on small and mid size commercial apartment buildings. 

If the above helped in providing more detail in CoC ROI vs 5 year ann appreciation let me know.

Thanks.

Hello. I am brand new to BiggerPockets and just starting to research the the business of buy and hold residential rental properties. When looking at a property analysis, which is more important to focus on CoC ROI or 5 YR Ann return? Are they both equally important?

Thanks.