All Forum Posts by: Eric T.
Eric T. has started 7 posts and replied 12 times.
Post: Importance of cash flow vs cash-on-cash ROI
Eric T.Posted
- Posts 12
- Votes 0
Thanks for the reply @Guifre Mora! I definitely see the importance of having higher cash flow, since it means more physical money in your pocket.
Post: Importance of cash flow vs cash-on-cash ROI
Eric T.Posted
- Posts 12
- Votes 0
Hi all,
Brandon Turner mentioned in a webinar that he typically looks for properties that will meet BOTH a certain minimum cash flow amount and cash-on-cash ROI. For example, when it comes to single family homes, he'd like to see at least $200 cash flow and 10 - 12% COCROI.
What's the importance of meeting both of these criteria? What if you find a deal that has 20% COCROI but the cash flow is only $50? Does the cash flow matter much if your COCROI is super high?