Updated about 4 years ago on . Most recent reply
Whats the lowest CoC return% you've had on a deal
For anyone who has deals under their belt, I know typically 10-12% is a good ballpark but I'm curious to know if there were times when you went through with a deal when the COC is 8% or below? I'd love to hear anyone response especially ones in the North Jersey area!
Most Popular Reply
@Matthew Zelaya
This is a hard question to answer because it depends on what and where you are buying. For instance I’m renovating a 14-unit in Phx and it will be just over 8% cocr. If I were in KC, Dayton, Greensboro I would want to see a higher return CoCr.
The reason I am ok with an 8% in PHX is there is a lot of migration to PHX, specifically businesses. The rents on average will move a lot faster than a KC. For instance I am already getting over my projected rent and based on what I should be able to get rents to I will end up closer to 10-11%.