CoC Return & Cap Rate on Townhomes

[Mitch Paumen]

Looking to build a portfolio of rental properties, primarily to generate passive income / cash flow. What I’m struggling with is what are good financial metrics to evaluate a deal? I do use the BP rental property calculator...but in terms of Cash on cash return and cap rate, what are good targets in today’s market? I’m sure the short answer is “it depends” but appreciate any specific targets others use. I’m looking primarily at townhomes in the Minneapolis suburbs