If you are accredited, there are deals that target that type of CoC return each year, paying you distributions quarterly along the way and w/some upside in refinancing and sales down the road that could get you in the high teens to 20% IRR over 5 year type hold periods.  

You're likely closer to high teens.  

Austin is a sexy market, but Fort Worth might be more lucrative.

So even though I LOVE how creative you're being (I find creative investing very SEXY), let's analyze the deal as a deal:ARV: $399K (your number)Soft Costs: 5% Resale commission (in case buyer walks or can't perform), 7% holding costs (high due to 18 month hold), 3% Acq & Legal (around $58K)Rehab: Roof & Cosmetics: $15K Minimum (flooring refinished, paint throughout, upgrading appliances, minor touch up)Required Profit (mine, not necessarily yours): $30KNick's Max Offer: $296KNot enough juice in this one to keep tenant buyer happy.

There are some companies who offer initial rates in the teens but beware the shock of getting charged for almost every function the company performs.

Oh....and they shut the pool down because the teens would not stop having midnight orgies in it.  

The expected return is in the teens (IRR) and much of it comes from forced appreciation from value-add.

This is all guided thorough me and my team and our investors are consistently in the mid-teens on their ROI! 

I have sacrificed my entire childhood and late teens to devoting my life to self education in many fields of study.

Hello,We are trying to stretch staying in our two bedroom town home with our three growing young boys as long as possible to save for a down payment on a SFR once the oldest starts into his teen years.