Am I expecting too much?

[Rick Rolfe]

Hello team. I am a first time property investor looking for a single fam home or duplex in the Cleveland area (Parma, Bedford, Bedford Heights) or Tampa area (Lakeland, Spring Hill, Seffner). I want to purchase a long term rental.

 My investing criteria is: 

1. Coc (cash on cash) must be 9% or above

2. 100 minimum cash flow per door

3. Rent to price ratio must be .65% or above

4. Rent ready condition/no upfront Capx repairs or updates. Pride of ownership condition

5. Max price 300K.

6. Utility meters are separate and tenant needs to pay all utilities.

After I find a property that matches my rent ready or nearly rent ready condition,  I plug the numbers into the BP calculator.  Some of the properties meet my minimum cash flow and rent to price ratio requirements which is great. 

My Coc numbers are a different story though.  At most I get 2 to 4 % coc if that. 

Should I expect better cash flow numbers if I pick a property that needs more rehab? 

My question please. How can I increase my Cash on cash numbers? Some people get amazing 20 percent coc. How are they doing it? 

Thank you, Rick

[Tyler Gibson]

Quote from @Rick Rolfe:

Hello team. I am a first time property investor looking for a single fam home or duplex in the Cleveland area (Parma, Bedford, Bedford Heights) or Tampa area (Lakeland, Spring Hill, Seffner). I want to purchase a long term rental.

 My investing criteria is: 

1. Coc (cash on cash) must be 9% or above

2. 100 minimum cash flow per door

3. Rent to price ratio must be .65% or above

4. Rent ready condition/no upfront Capx repairs or updates. Pride of ownership condition

5. Max price 300K.

6. Utility meters are separate and tenant needs to pay all utilities.

After I find a property that matches my rent ready or nearly rent ready condition,  I plug the numbers into the BP calculator.  Some of the properties meet my minimum cash flow and rent to price ratio requirements which is great. 

My Coc numbers are a different story though.  At most I get 2 to 4 % coc if that. 

Should I expect better cash flow numbers if I pick a property that needs more rehab? 

My question please. How can I increase my Cash on cash numbers? Some people get amazing 20 percent coc. How are they doing it? 

Thank you, Rick

In Florida you might be asking for a little too much. It is more common to see 6-8% CoC but even then it will likely not be pride of ownership. I know a broker that might have some off-market stuff that he could help you with. I would be happy to connect you if you would like.