What are your returns on your rentals?

[Jason C.]

I just went under contract for rental property number 7 and I’m projecting my return on invest to be 11.7% on a yearly basis. While I’m happy with this return it was below my average return of 17% on my previous 6 rentals. Number 6 returns me 15% and was purchsed only 10 months ago. It’s obvious that we are in a difficult market, but deals can still be found, even though the returns are less and less. What are your average returns and do you see them lowering on newer purchases?

[Caleb Heimsoth]

I’m around 10-13 percent CoC returns. If you include debt paydown/appreciation it’s more. I personally include the debt paydown but not the appreciation, which usually makes it closer to 15 percent

[Caleb Heimsoth]

I’m around 10-13 percent CoC returns. If you include debt paydown/appreciation it’s more. I personally include the debt paydown but not the appreciation, which usually makes it closer to 15 percent

[Jason C.]

@Caleb Heimsoth I don’t include the appreciation either. Are you noticing lower returns in newer purchase?

[Caleb Heimsoth]

@Jason C. nope.  My new purchases are higher returns because the first couple I did was turnkey.  

Now my purchase price is lower, interest rate is higher though.  So it almost evens out but still higher then turnkey was for me a year ago. 

[Lior Reich]

@Jason C. What market you currently invest in? Houses in Upstate New York - 10/11% cap rate Doubles in the same area - 14/15% cap Cleveland heights , south Euclid - around 10% Detroit - 10% Condo apartments in Florida - 7/8% cap rate Hope I could help:-)

[Leon Li]

@Jason C. It depends if you are including maintenance vacancy and capEx, or if you are using the 50% rule. I would say the deals are not dropping on return rate unless you are looking at the same area, out of state investing etc.

[Jason C.]

I’m using cash on cash for my return analysis and my turnovers aren’t that often. I’m not including random expenses but that could lower it by 1% maybe 2%. I’m operating in the south east. Rental growth has been strong so that keeps me buying so I guess it’s offsetting the higher prices and rates but I feel like I’m pushing the rents in my market. I haven’t felt that feeling before.

[Aaron B. Lewis]

@Jason C. Detroit has the best returns period.looking to connect with professional/serious investors My Track Record here https://docs.google.com/spreadsheets/d/1_b5hu-UrEBU2i1nTZJlYNce5-H8N1MsuSi83yK2rOX0/edit?usp=sharing

[Mo Hass]

Great work jason. Looking to get into buying rentals. How hard is it to get renters?

[Jason C.]

@Mo Hass it’s not that tough honestly. But I put out a very nice product, very clean, safe, gIId location. There are alot If variables that go into answering that Question