What ROI Do You Settle For?

[Timothy Hero]

 I see investors with numbers that seem very low and some with numbers that seem unrealistic.

I tend to see 14-16% ROI on average, but I've seen as low as 10% and as high as 40% for residential rentals.

I'm curious to hear what the BP community is getting in today's market and what your minimum is to satisfy you and for you to consider it a great investment.

Anything less than 25% doesn't seem to satisfy me. I can't bring myself to write a check for $150k between the downpayment and closing costs only to receive 15% ROI, or $22,500 on my money. I can have $150k in the bank or I can make $1,875/month. To me, those numbers don't satisfy me. 25%+ does, however. I spend $150k and make roughly $3,000/month and now things begin to unfold better. I know getting a 25% ROI means either solid MFH investments or getting the property in foreclosure or something and rehabbing. In other words, the BRRRR strategy.

Obviously appreciation plays a part and if you're getting the property at a great price. But appreciation factors aside, what's your minimum ROI you'll settle for and what are you currently getting?