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Updated almost 6 years ago, 01/10/2019

User Stats

99
Posts
58
Votes
Sarah Buchanan
  • Landlord
  • Sioux Falls, SD
58
Votes |
99
Posts

Return on Investment Goals (Buy and Hold rentals) 2019

Sarah Buchanan
  • Landlord
  • Sioux Falls, SD
Posted

I am a new investor, investing PT/evenings (still have my day job) in my second year of buy and hold investing with 2 rental properties so far. I am curious as to what ROI people are expecting and actually seeing right now. I know the podcasts talk about "2% rule", 10% min ROI, cap rate 10, etc. and those numbers sound amazing. I am sure people who are well-connected, seasoned investors investing full-time/with a team are able find those deals, but I have yet to find one in my 2 years of looking (the 2 I've bought are about at the 1% rule / about 8% ROI, cap rate 7ish. My second year in I'm doing fine, cash flowing, but I'm wondering if I should get more selective. I don't want to buy a bad deal, but I also don't want to pass up decent deals waiting forever for the "perfect" one to come along. I believe in order to find the best deals I will have to quit my day job and do a lot more hustling, and I'd like to get a bit more experience under my belt first. My goal is to quit and do more hustling by the end of this year, but in the meantime, what is a REASONABLE ROI? For those of you with more experience, what ROI and cap rates are you seeing now, and did you start with lower rates of return? Newbies like me, what is working for you? Thanks for any help you can offer!

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