What is your target cash on cash and ROI in Central California, trying to evaluate a deal

[Account Closed]

Hey everyone, we are looking at purchasing a property here in Bakersfield and I wanted to pole our fellow BP members here to see what percentage of cash-on-cash return you're accepting. The potential deal I'm looking at has a COC of 10% assuming I use a private lender I'm in contact with. The price is $222,500, $2,060 in gross rents with long term tenants. 3 houses on 1 lot. I budget conservatively, so I'm estimating roughly $350 in ROI after expenses and savings for future cap-ex. These numbers may be better if I can get the price down and/or negotiate seller financing with a lower percent down. My current assumption is 20% down.

Thoughts on cash-on-cash target percentages, and also thoughts on this deal?  

[Albert Bui]

With "traditional," investing like phil pustejovsky mentions returns of 10-20% are excellent however creative or hybrid investing offers much higher returns up to infinite returns or more.

Traditional - requires money such as large down payment, credit, and less specialized knowledge but returns can be 0-20% typically with 20% being very good depending on which metric you're using to gauge like cash on cash, return on equity, etc. If you factor in other returns like amortization, depreciation, etc you can get higher. This may be great for those with out the time to learn, build, and acquire specialized knowledge.

Creative -  Doesnt require much money if any at all, some times none,  but it does require massive amounts of specialized knowledge and hard work. The returns can be exponentially higher than tranditional investing. You can get infinite returns or more.