That's a difficult question for someone to answer for you. Ultimately, you will have to determine what kind of return is acceptable. It's all subjective. One person may be happy with 10 percent while another person wouldn't consider anything less than 20 percent. You have to identify what your goals are and set parameters that get you to that goal. If you don't have buying criteria, how can you possibly identify a potential deal?
For me, I have to cash flow at least 300 per door. Not 280, not 291. Cash on cash will vary based on several things, but this is the one metric I use up front to separate the deals from the duds. As it pertains to PM, you will want to factor in the cost of management whether you intend to manage the property yourself or not. There may come a day when you don't want to manage it, or even worse, you can't manage it. If the cost of management ruins the deal then the margins may be too tight and it probably isn't that good of a deal.
