What performance do you seek?

[Jeff M.]

The age old question: what performance do you seek to make a deal worth doing? Assuming criteria of quality B property in good location, I think a Cash on Cash return of 10% and a total ROI including principal paydown of 15% (without planned appreciation) is good. Expenses are factored in and these returns have to come after PITI, repairs, management fees, etc. With today's interest rates I find it is possibe to structure the above return on properties that have a cap rate of about 8%. Anyone else care to weigh in? What works for you?