COC Return (What if 6-9%?)

[Taylor Knott]

Good afternoon,

The past couple of weeks have been great. Sought out and found a lender over a local one that was wayyyy too expensive. Interviewed realtors and found one to officially work with. This guy had plenty of local insight and is actively investing.

Currently I'm actively looking at properties and listings my realtor sends my way. Penciling out the numbers it seems for our market there are plenty of SFH as rentals that have positive cash flow after factoring in cap-ex maintenance, vacancy, management, financing costs and upfront rehab costs. I know all rules can't be applied generally knowing markets and even neighborhoods vary. That being said I'm finding properties that have COC returns in the 6-9% range. As a first time REI are there others out there who have found this the case for their market? And do you invest in them? Obviously you can find ones with better COC return, but may be in lower quality neighborhoods and may need a lot of repairs that would eat up or negate your COC.

I'm on the prowl, but don't want to get emotional and invest in a property with out proper consideration. Would love to hear thoughts from people in similar areas.