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Updated over 7 years ago on . Most recent reply

User Stats

16
Posts
2
Votes
Ethan Wilson
  • Rental Property Investor
  • Vancouver, WA
2
Votes |
16
Posts

Numbers almost there but just shy!

Ethan Wilson
  • Rental Property Investor
  • Vancouver, WA
Posted

I'm aggressively looking for and analyzing deals and have found many that come just shy of hitting my hard metrics of $300 dollars a month cashflow and 12%COC ROI.

An example would be one that cash flows $290.55 and has a 22.83% COC ROI.

I know hard metrics are there for a reason, but I wonder if I'm going way too conservative when I'm doing my analysis?

Should I budge some numbers around to make it work or continue to stick to the line and wait till a deal hits the mark?

Most Popular Reply

User Stats

104
Posts
53
Votes
Chris Puglisi
  • Investor
  • Wallingford, CT
53
Votes |
104
Posts
Chris Puglisi
  • Investor
  • Wallingford, CT
Replied

Hi Ethan, 

I am not familiar with your market and how competitive it is but personally, I would look at your ROI before the cash flow number. If you are able to find a deal with 22% ROI you are doing pretty good. In the example you gave, you cash flow is 80% higher than your target and but cash flow is only 3% lower than your target. I would take that deal!

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