How much do you make per door?

[Seth Baumgartner]

What number makes a deal worthwhile for you, I'm just starting out and curious what other investors shoot for.

[Jacob St. Martin]

Seth, this is a really hard question to answer because it depends so much on location, the investor, the goals of the investor, the type of property etc. First, most investors like to use the cash on cash return on investment (cocROI) as a metric rather than a dollar amount per door as it gives you a better estimate of how hard your money is working for you. After that it gets more complicated. A long term rental investor looking for no headaches and little work might be fine with a 10-15% ROI. A newbie short term rental investor might be willing to invest a lot of time into a deal but want 30-40% ROI. If you house hack you might be able to get an 100% ROI like I am right now but not everyone wants to share a house with 5 other people in order to make that happen. A syndicator might be willing to take no (or very little) cash flow for several years but in those years build over a million dollars in equity. There are a very large number of paths you can follow in real estate and each has its challenges and benefits. First, I would identify what type of real estate you want to invest in, how much time and effort you are willing to put in, and what your financial goals are. Then once you have identified a strategy you like start learning what a decent return is on that type of real estate then jump in. I personally would recommend house hacking as the best place to start! Feel free to reach out if you have any questions.