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Updated about 6 years ago on . Most recent reply

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Gregory Washington
  • San lorenzo, CA
36
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What’s the minimum ROI or cap rate you should accept on a rental?

Gregory Washington
  • San lorenzo, CA
Posted

6%?  8%? 10 minimum? What are your thoughts?

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Replied

I prefer not to keep my cash in real estate and therefore do not use ROI as a metric. I prefer 100% financing through the seller and refinance to pull any dead equity. My cash is then moved to a income fund that over time has will averaged a minimum 10% return.

So I guess 10% ROI would be a absolute bare minimum requirement.

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