Cash-on-Cash Return

[Hui Li]

What is minimum COC return for a decision making?

Condo:

Purchase Price: 190K

 25% down+Closing= 52K

Mortgate: 700*12=8400

Expense: 600*12=7200

Rental Income=1600*12=19200

NOI=3600

COC=3,600/52,000=6.92%

Is this a good buy?  

In Achorage, AK, 190K condo rent for $1600/mon, 250K condo rent for $1900/mon. It's hard to find COC >12% deal. Am I right?