Central Florida Rentals - What is a solid Cash on Cash ROI?

[Brandon Reed]

Hey BP!

My wife and I looking to purchase our first Rental Property and I've been using the calculators provided on this site. As I've been inputting a bunch of "practice properties"...I've had a hard time getting a feel for what a "good" Cash on Cash ROI is. Some are as low as 3-5%, others I've gotten up to 20%.

So my question is...what should our goal be? What could we consider to be a solid percentage that we can be happy about? I know a lot of it is subjective and varies on a case-by-case basis. But I'm just looking for a very general idea of what to try for in the Central Florida area. Specifically, we are currently looking at the Winter Garden and Clermont areas.

- What do some of you strive for as you put deals together?

- What is the percentage you are never willing to go below?

- What is the percentage that would have you thrilled beyond your wildest dreams :)?

Just trying to get a feel for what we should be trying for. Thanks so much in advance for any insights you can provide!