What do you consider to be a deal?

[Douglas Johnson]

In beginning my real estate investing journey I have been spending time looking at listings and trying to work out what my criteria should be for pulling the trigger on an investment property. For example having an IRR of over X percent or a cap rate of over X percent. I am curious about what metrics everyone else uses to figure out what makes something a deal for them. I would really appreciate it if some of you could share your personal metrics or criteria for properties you invest in.

[Andrew Freed]

@Douglas Johnson - For multifamily investing, cash on cash return is my go to measure. How much returns am I receiving based on how much cash I am putting into the deal. The CoC return differs per area on what is good vs. bad. For intance, a 5% CoC return in Boston might be good, however in my market, Worcester MA, a 5% cash on cash is not good. It is very much market specific. Keep in mind that the cash on cash return takes into account the all in cost of the asset, e.g. the purchase price + how much cash will it take to renovate the property and bring it to stabalization.