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Updated over 7 years ago, 07/26/2017
Compound Annual Growth Rate. Do you know yours?
I was writing down my criteria for rentals and one was to beat the SP500 but then I realized that the SP500 has a compound annual growth rate (AKA annualized return) of 9-10% with dividends reinvested. I often hear other investors with a criteria of having a CoC of >10% (to beat the market) but of course it's not an apples to apples comparison; CAGR calculations require you to go back in history.
Do you predict your CAGR a few years (5?) into the future?
What criteria(s) do you use to bite on a deal?
What's your CAGR for your rental portfolio? Has it been beating the SP500?