Current Deal Analysis Baselines

[Ross Hayes]

For SFH LTR, I'm curious for your current take on the following deal analysis metrics:

- What are you considering an acceptable cash on cash return currently?

- At what point for return on equity, do you feel like you are not leveraging the equity well enough?

- What kind of cap rate do you target for a SFH LTR?

[Greg Scott]

Yes.  As an investor, why would you ever pay full price?

Great investors always buy at a discount. The discount may not be obviously apparent, or may require some work to realize, but that is where the money is made. 

If you buy a house for $100K and put $50K into it, and once it is rehabbed it is worth $200K, you captured $50K of equity.