Expected Returns

[Manesh Hardeo]

What in your opinion makes for good cash on cash returns? Now I know this can vary depending on the risk of the area, but generally speaking what do you expect?

I see companies advertising 25% cash on cash returns, but when I calculate the numbers I'm not seeing taxes, insurance, management (i know this is optional), 2 months vacancy, and even tenant placement being factored. After all those costs what would you expect?

I'm curious to see the response. Thanks for your help!

Manesh