Whats a decent COC return in 2022?

[Brandon Rush]

Hey team,

With home prices still rising, I'm finding it harder and harder to find a good deal and I'm curious if most investors are still getting good buy and hold deals (8%-12+%) or if lower COC returns is acceptable with other positive metrics.

To give some context, I just started wholesaling and in the past 3 weeks, I've talked to 3 owners that were accepting/ had offers on the table for 30k-50k higher than my MAO (70% rule w/ best case rehab budget). So, even the most motivated people are getting offers at a price that (in my opinion) can't make money.

Question for active investors: What is an acceptable COC for SF/small MF these days and why? Over the years, BP has highlighted a COC range from 7%-12+%.

I always assumed that I just wasn't finding motivated enough sellers, but after having this experience wholesaling and seeing on a recent BP video that Dave Meyer would be comfortable with a 4% COC return that had strong cash flow and strong annualized return, I'm thinking I might actually be missing something here.

Thanks for any input!