Some, like James Dainard, emphasize an annualized cash-on-cash (COC) return of 60%-80%.

However, it is important to note that if a leverage you're looking for doesn't qualify with DSCR, it means that your cash on cash return is negative (because it means your NOI or Rent is lower than rent -in most cases).So if you want to maximize leverage and are less cash flow sensitive (okay being negative), then conventional makes sense.

If your goal is to maximize cash flow, look for properties where you can live in one unit and rent the others at market rates.

But if you want to use a conservative approach and use the extra cash flow to pay off debt versus further investing, I think that's a very legitimate way to go about it.

Purchase price: $35,000 Cash invested: $35,000 Sale price: $110,000 Purchased off-market from a tired landlord, this fix-and-flip involved renovating a distressed property with outdated features and deferred maintenance.

These will catch a buyer’s eye in any market, and it's no extra material cost to do so!

Purchase price: $35,000 Cash invested: $35,000 Sale price: $110,000 A fix-and-flip project purchased off-market from a tired landlord involved buying a distressed property with significant deferred maintenance.

As a former business owner, there are times of the month where it seems that all the cash goes out at once.

Haven’t carried cash in years.

Purchase price: $60,000 Cash invested: $109,106 Sale price: $210,000 Contributors: Peter Vekselman Purchased on 9/6/2024 for $60,000, this Anderson, IN home underwent a $109,106 renovation before selling for $210,000 on 2/4/2025.