What percentage of Cash on cash do you think is good

[Peter Jin]

Hi,

I am just curious about your options. When underwriting a deal, what percentage of Cash on cash return do you think is a good deal?

5-10%, 10-15%, 15-20%, more than 20%.

Thanks.

[Ruchit Patel]

If you are starting out, lot other things are more important on CoC returns. Peace of mind will comes from dealing with right deal and right people and right area, and not from high CoC returns.

20% CoC is not worth the headache it brings if deal or tenant or area turns out to be bad.