what's a good ROI on a deal

[John L Daly]

hello just wondering what a good ROI is on a real estate deal , what should I shoot for ?

[Mike D'Arrigo]

@John L Daly It will depend on what class and type of property. You should expect a higher return from a C class than an A or B class because of more risk. You'll generally have a higher return from MF than SFR. The important thing when evaluating returns is to look at all sources of return over time. Too many people look only at cash on cash return in year one. Real estate returns come from 4 sources. 1. Cash flow, 2. Appreciation. 3. Mortgage paydown and 4. Tax benefits. If you're not evaluating a real estate investment on the basis of all sources of return and over time, you're being short sighted. You don't get rich from cash flow a lone and you don't get rich overnight. Wealth is built exponentially over time.