Cash on cash return of 4% is ok?

[Derrick U.]

I'm looking at a few properties in Phoenix. Can't seem to find anything that yields greater than 4-5 percent return. Would you be ok with that return? Assume down payment is 25%-30%.

[Tanner Kurilec]

@Derrick U. I know that the reason some people aim for 12%+ CoC on deals is that they can earn 7%-8% on money in an index fund and that is alot less work than a rental property. So if you are going to be doing more work, wouldn't you want a better ROI on your money? But like Spencer said, it really matters on what your goals and criteria are.