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Updated almost 6 years ago on . Most recent reply
Cash on Cash ROI Standards in Rentals
HI All!
I am a noob here and starting to learn about Real Estate Investing in Rental Properties, and had a couple of questions on how people typically crunch their numbers when analyzing a deal.
I watched a replay webinar from BiggerPockets here and saw that when using the Rental Property calcualtor on the site, they usually calcluate in Vacancy, Repairs, and CapEx into the expenses.
I am reading that people usually aim for 12% or more CC ROI and that would be considered a good deal. I am also finding that when Vacany, Repairs, and CapEx is NOT included in expenses, it is usually easier to get 12%+ CC ROI.
Does anyone ever NOT include Vacancy, Repairs, and CapEx in the calculations? I am talking with some other investors and it seems a few I have talked to so far don't include those numbers.
Second non-related question - When the people say "I usually look for $100 Cash Flow for 1 door, and $200 for 2 doors" What does this mean exactly? Does it mean $100 per bedroom for Cash Flow?
Thanks for your help!