How do you get to 12% cash on cash or 1% rent?

[Keith Homstad]

I have analyzed a ton of deals in every town within 100 miles of where I live and I cannot get to 12% cash on cash return.  Even when I offer half of their asking price I am still only at 8-10% cash on cash and no where near the 1% rental income (of the sale price).  I dont know if I am looking at the wrong or if 12% is unrealistic.  

**I got the 12% from Brandon's pod cast**

I would appreciate any feed back, I am fairly new to rentals and starting to get discouraged. 

[Cole Raiford]

@Keith Homstad I invest in Mississippi and I buy off market. I see a house every few months on the mls that would work, and I’ve offered on a few of them, but every investor in the area sees them and a bidding war ensues. I’ll gladly let them overpay and hold off for a better deal.

If you are looking for cash flow, I suggest you target a market in the southeast or Midwest. These markets aren’t great for appreciation though so it depends on your long term goals. Brrrr is harder to pull off in appreciation markets (west coast, Denver, Phoenix, etc.).