Investment metrics

[Seth Mosley]

Hey all. I feel like a bit of a newbie on here compared to a lot of you, and hope to pick your brain on how you think about your long term rental properties. I own 19 units spread over 7 properties in tennessee. When looking at your properties, what do you consider a "good" return on your inveatment? And what metric do you go off of? (Cash on cash roi/ monthly cashflow/ pro forma cap rate / etc) My properties at the moment are anywhere from 8% to 23% cash on cash returns, with cash flows ranging from $175 a month to $833 a month. I am counting reserves for repairs and vacancies in my numbers as well as the standard pm and Piti expenses. Would love to see how some of you evaluate your purchases. Thanks!

[Joe Villeneuve]

3 rules:

1 - All my cash in back within the first year

2 - $300/month cash flow

3 - After I get all my cash back I put in (refi), I have to have enough cash back to go onto my next deal.