So it's weighted returns. 

@Merrick Hidalgo If your private REIT investment is returning only 10% of the principal and the remaining 90% is likely lost, the key factor in claiming a capital loss is when the loss is realized for tax purposes.

So about a 35% cash on cash return for my buddy each year on his $100,000.

I'm open to properties were cap rate is around 10%+ and Return on Cash is 10%-20%. 

The stock account is tanking, you see no hope for it to return, and you want to preserve the remainder of the principal;3.

Unlike Robert K and many on this site, I judge a property based on total return.  

@Gregory Wilson  - partnership return compliance has become insane in the last several years.

If you can rehab and refinance (BRRRR) to extract all investment and achieve neutral cash flow you would have infinite return (most of my RE investments have achieved infinite return but the cash neutral has in particular gotten a lot more challenging when the rates rose starting Q2 of 2022).Any money extracted via a refinance is tax deferred. 

You can’t ask for a good cashflow amount, only a cashflow rate of return. 

All for a single property...It's a lot of work...for what kind of return?