First Investment Cash on Cash ROI Target

[Isaac Summers]

Hey everybody.

I'm completely new to this and have recently developed a passion to become financially independent. This is my first blog post on BiggerPockets and am still learning, so please be kind if I get my terms wrong or ask more questions. 

Recently I attended this webinar on buying you first few properties. 
How to Buy Your First, Second, or Third Rental Property!

In the webinar Brandon mentioned that he looks for properties that have a 16% cash on cash ROI. Is this a feasible rate to accomplish starting out without a network of individuals who can find you the best of deals? Or should I target for something lower, closer to 6-9% ROI?

Is it okay to target these lower returns as it will be building equity? Currently I am paying rent and I feel like the money is just constantly leaving my pocket. I have thought about buying a primary residence but I am constantly reminded that your house is not an asset but a liability.

I may have two potential hard money lenders (relatives), but as I don't want to count on this my other option be to get a FHA loan with PMI. This definitely eats into the cash flow and will make it a lot harder to find a high ROI.

I am also living in Nashville, TN and want to start investing close to home. I feel like this market may already be overpriced and I am having trouble finding properties that has cash flow unless the offer is a total low-ball. Does anyone have any quick insight on this market?

PS. If anyone here lives or is passing through Nashville and would be interested in grabbing a coffee please let me know!