What is your target cash on cash return?

[Andrew Diamond]

Hi BiggerPockets Community, 

After analyzing a deal, what cash on cash return are you targeting to identify if this is a good deal? What other metrics are you evaluating and which numbers are "good numbers?"

Thank you!

Cheers,

Andrew 

[Steven Goldman]

@Andrew Diamond    I agree with @Scott E. that while cash on cash return is important the key to real estate is to select locations and properties that will appreciate over 5-10 years. If you are holding the property the gold will be in the increase in value, the tax benefits and the increasing equity through payment of principal. This is why when we reach the end of a long upward market many investment property owners sell to take advantage of the increase in equity, They than bank the cash and pay taxes if necessary. They buy back in when the market has depreciated from a recession. Think long term not short term.