Properties with min: 12% cash-on-cash return (at 80/20 leverage)

[Jacob Ashley]

Searching for markets with properties that meet or exceed the following criteria:

- cash-on-cash return of at least 12%

- annual appreciation of at least inflation plus 2%-3%

- low crime area

- strong school system area

Above targets to be reached after provision for the budget assumptions below:

- 10% vacancy

- 10% of rent for property management fee

- 10% of rent for CAPEX

- 5%-10% of rent for general Operating Expenses

- 1%-3% of property value for insurance

- 1%-3% of property value for taxes

- 10% of rent for misc. expense retainer

- debt service on 80% leverage

Are my expectations unreasonable, or have you experienced/come across properties in locations where I could achieve these targets?

Look forward to the feedback! Please feel free to share agents/property managers/other “Core Four”-like team member’s info as you deem helpful.

Thank you!