What kind of cash on cash returns for buy and hold?

[Justin Westmoreland]

What kind of returns are cash buy and hold investors looking for in distressed neighborhoods?  

[Brian Ploszay]

Underwrite this carefully.  The reason is that units in lower income neighborhoods often have higher evictions, higher repairs and higher wear and tear on the properties.   Matter of fact, there are unpredictable occurrences that can happen.  Focus on getting the right tenant who stays long.

Cash on Cash returns - they can be quite high, above 20%.  I tend to look at cap rates, the leveraged rate of return, as my basis for analyzing some of these investments.