What's your ROI on rental?

[Aaron Xie]

I am interested in learning the ROI (return of investment, i.e., net annual income/total purchase price) of other investors on their rental properties, to see if there is a big variation across cities/states. My ROI in the last two years for my SFH rental is 6.11% and 7.91%, respectively. The property is in Indianapolis.

[Clay Manship]

@Aaron Xie

I am admittedly invested in "riskier" neighborhoods than most, however, my average cap rate for deals is in between 17 - 21%, with a CoC over 30% for most leveraged rentals that I own. I think you are wise to not account for any debt service or appreciation...that would throw off the income stream.