Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
How much money do you need to make or ROI % return needed before making the offer or purchase? This is more a general question as everyone has different income level. I'm trying to gauge the varying different levels of investor.
For me, I need to make 10%-15% ROI, and could come in different forms for overall package, price appreciation, cashflow, or principal payments to reduce principal.
For some, won't wake out of bed unless $100k net per transaction.
Lender · Smyrna, GA · Member since 2017 · 18 posts · 9 votes
8y
Anything under 12% cash-on-cash for buy-and-hold is a waste of time in my mind. I can make close to that with much less risky investments than real estate.
For a flip transaction it's less about ROI then it is about profit per month of the deal. I'll take a slim $20k profit on a deal that I'm only holding for 30-60 days. That's $10k/month! If it's a lengthier rehab, say 6 months, then I try to net out at least $8k-$10k/month of hold time.
Guy with Great Hair · Austin, TX · Member since 2013 · 2k+ posts · 4k+ votes
8y
I usually pass on deals with less than 10-12% CoC on analysis, if I find a deal that passes my underwriting at 12% nominal, then I know real world will be a slam dunk.
@Sean Grapevine is right anything less is not worth it, especially in years like this one where the S&P is a monster.