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Updated over 4 years ago,
What’s Your Largest Cash on Cash ROI?
I've been running the numbers for a bunch of properties in my area and most of them gave me a negative return, except for a couple which was expected. I would get -20/-30/-5% ROI consistently. I managed to pull a +9% and a +2% ROI but then I decided to expand outside my neighborhood. I found a house that was $179K, but according to rentometer.com, the average rent in the area was $2700 a month. I ran the address several times and kept getting the same result.
After I did the four square method, and including mortgage, cap ex, property management etc., my Cash on Cash ROI still came up to 151%!
I wanted to research the area more, but my wife called me away from my office for dinner. I'll find out more tomorrow. This number seems unrealistic to me almost at cartoonish levels. Is the ROI possible? What's the largest cash on cash ROI you've ever achieved?