@Tyler Helton COC = Cash Flow/Investment BasisSee this great article for J Scott's explanation.  

:Originally posted by Steve Babiak:Pat hasn't been on BP in like two years ...Moderators - please find him so he can tell the rest of the storyPat's profile indicates gender to be female, so her is the word you wanted to use ...Joel - nice detailed explanation!

While I realize each geographic market is vastly different in terms of acceptable cash on cash returns, I'm curious for what benchmarks or rules you have set for your business to ensure long term financial success.For example, I evaluating a property right now with 11.86% Cash on Cash and that includes 10% vacancy, 12% PM, 5% Cap Ex and 10% Repairs. 

@John Matthews We just closed on a duplex in SC with a great COC with a conventional 15 year mortgage (3.875%)Sale price:  $53KDownpayment:  $13,250 (25%)Income:  $12,240 ($1020/month (total...both sides))Expenses:  Taxes $1020Insurance $480Repairs $1200CapX $1100Vacancy $979Debt Service $3499No PMCash flow $3928/year (29%)They can be had....but it took me months to find this one and I haven't found any others in the small geographic area just south of Charlotte, NC where we focus.

@David Krulac  Oregon is a strange place.. it only has 3.5 million residence's in a state that is HUGE geographically. 2 million live in the Willamette Valley that's an area 90 miles X 20 miles .Rural Oregon has been in a state of depression  since the spotted owl killed the timber industry in the 90's...

I’ve explored modular, too, but I’ve bumped into similar issues (project too small, multi-family not in the company’s wheelhouse, geographic proximity incompatible, etc.).

@Robin CoxThank you so much for such an explicit explanation and details.Of course, I did not want to throw lots of information on my first message.

HOA is around $200/mo and taxes around $3500/yr.The second question I have is more hypothetical and involves an explanation on leverage.

As I'm sort of new in town, I'd estimate that less than 10% of my contacts (in gmail, facebook, linkedin) are not close enough geographically to make them people I'd market to for local home buying/selling. 

@Carter McCue Thats a good explanation@Karen Margrave Is that something that can be negotiated with the title company?