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Updated about 6 years ago on . Most recent reply
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What’s the minimum ROI or cap rate you should accept on a rental?
6%? 8%? 10 minimum? What are your thoughts?
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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.