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Updated over 5 years ago on . Most recent reply

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24
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Brandon Wulff
  • Rental Property Investor
  • Las Vegas, NV
4
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24
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Should my CoC % be lower if I am putting a 20% down payment?

Brandon Wulff
  • Rental Property Investor
  • Las Vegas, NV
Posted

Would my cash on cash return % be a little lower in a situation where I am putting a 20% down payment as opposed to using the BRRRR method? If so, what kind of CoC return am I looking for? Brandon usually says go for 12% since that's double the stock market, but I feel like that would be very difficult if I'm putting 20% down and some rehab costs. Any input? Thanks!

Most Popular Reply

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13,423
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Joe Villeneuve
#5 All Forums Contributor
  • Plymouth, MI
19,465
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Joe Villeneuve
#5 All Forums Contributor
  • Plymouth, MI
Replied

The less money you put down (what the cost of a property is to you), the higher the CoCR because you have less cash to return.

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