Is my ROI on my duplex good?

[Douglas Gratz]

Hello friends!

I need some help. I don't know how to know 1. If my ROI is good and 2. For research how do you use the average cap rate to determine the price you should pay.

For the first question about ROi- I'm all in on a triplex that after all expenses cash flows $1400. I bought the place for 125 and put 15k into it for a total of 140k and and ROI 1400(12)/140,000= 12%

Is 12% good. Also my properties are in norristown Pa

[Corby Goade]

I think you should put the idea of a CAP rate out of your mind. Cap rates are valuations for commercial properties, you are dealing with a residential property. Focus on CoC or raw cash flow to determine what you are comfortable with.

Beyond that, @Michael Ealy has given you some solid advice above, but no one can tell you what a "good" deal is, you have to deem what is an acceptable return for your situation.