Your Cash On Cash Return

Comments(11)

• 
  DaveT1st August, 2003

  It depends upon the rest of the numbers. If you are looking at 30% return on a $1000 investment, I would say that is not enough.
  
  Rather than a specific yield, I look at the cash flow dollar amount then decide if that is good enough.

• 
  2000rock3rd August, 2003

  Luna,
  
  Unless I get a 100% ROI...I DON'T do the deal...
  
  When YOU pay nothing down..and get $1K-5K down on a L/O and $200-$400
  PositiveCashFlow...
  
  ...that's a nice 100%...ROI
  
  IMHO
  
  
  ....as always,
  
  
  GoodInvesting, Rocky

• 
  hibby764th August, 2003

  if you put nothing down, it's impossible to calculate the ROI (it's infinite).

• 
  hibby7619th August, 2003

  In multi's, my minimum is $50 per unit per month and I shoot for $100 and up. (nothing down deals). Less than that and it's probably too risky and not worth my time.

• 
  ram19th August, 2003

  Let me see them...I'll consider those deals you all reject, because I put 20% down, look for a 12% unleveraged return, and hold them...condos, single-family in Dallas Metro preferred.

• 
  WillFalkiner19th August, 2003

  It depends on how much i have to put into the deal....
  
  generally speaking....usually 100%+ ROI.
  never less than 50%,often 500%-1000%+
  
  generally speaking... minimum of $100/unit/month cashflow. ($150+/unit/month is what i aim for)

• 
  bj_gibbons27th August, 2003

  Quote:
  On 2003-08-04 05:08, hibby76 wrote:
  if you put nothing down, it's impossible to calculate the ROI (it's infinite).
  
  Math whiz! Dividing by ZERO does not compute! Zero down mean little cash down. Ad in all your expenses to market and use that figure. Include $10-20 per hour for your property investor time invested.
  Best to All in CREI,
  Brian

• 
  classimg27th August, 2003

  ROI in my book is not a standard formula. I would suggest that you do your homework, because 100% ROI looks good but if the amount is under $3,000 or monthly cash flow less than $100 in the real estate world is it REALLY worth it? - Not for me, I would take a pass...
  [addsig]

• 
  GFous21st September, 2003

  Cash on Cash Return
  
  The amount I accept will certainly depend on:
  1. Appreciation potential of property
  2. Amount of cash I put down
  3. Risk
  
  But since most of the properties I look at fall with in a certain risk tolerance (or I don't look), a certain apprecaible area...
  
  I generally will not look at deals with less than about a 20% cash on cash, and my capital must be secure ( no chance of deflating values)
  
  I will say, however, that most deals I evaluate are not Cash on Cash returns because of the high leverage I use. I use Internal Rate of Return and do so for my clients.
  [addsig]

• 
  yehoshua3022nd September, 2003

  Hi,
  I'm a newbie, so help me with the numbers. In the north east where most condos go for 120+. Many banks will require at least 5 if not 10 to 20 pct down.
  Most Condo orgs require maintenance of $400-$600/mo.
  What strategy should I employ?
  Thanks

• 
  DaveT23rd September, 2003

  yehoshua30,
  
  Your question seems to be much broader than the scope of this forum. You will be more likely to get a meaningful response if you post your question in the beginner's forum.