Am I Missing Something?

[Ryan Burris]

Ive been looking around lately in a few different areas some in Idaho and some in Montana. Single Family, and multi-family options but every property I find end up calculating at lower than a 5% ROI most sitting around 3% unless they would accept an offer much lower than their current asking price. According to property assessment over the past few years most places have almost doubled in price.

Is the market just super inflated right now? Is this typical in your areas? Possible my calculations are off?

[Satyam Mistry]

@Ryan Burris By ROI are you referring to your cash on cash return which does not include other benefits such as appreciation, depreciation, and equity pay down? If so then this is common in the marketplace today in the 1-50 unit type properties that I am currently focusing on. This is also common for properties that are on market. Just because you are seeing these lower returns does not mean they are necessarily bad investments however as there are other considerations to be made as well as your personal investment strategy and where you are currently at in your journey.