When underwriting a deal, what percentage of Cash on cash return do you think is a good deal?

If it is a regular rental, draw up paperwork that clearly outlines how much money they lent you, when it will be paid back and how much (eg if you buy a house for $400K and 10 years later they move out and it sells for $500K-do they get a percentage of the profit (after taxes and costs)?

Fortunately, a very large percentage of our tenants deserve positive LL reference so it has seldom been a problem.  

This may help you figure out an optimal down payment percentage that may be somewhere between the 3.5% and the 40% that could give you a higher CoC return.

When other managers do a percentage usually the percentage is of the monthly charge not of the outstanding balance, but it could be different where you are. 

You might even call some of your competitors and strike up conversations about how you generically want to open a bed and breakfast elsewhere and see if you can get them to disclose their occupancy percentage or any other valuable data.

The exact percentage depends on factors like your credit score, the type of loan, and whether you’re buying single-family homes or multi-units.A few tips:Research both markets thoroughly (Southern California vs.

So as a percentage of rent, low rent units need higher percentage hold backs.  

However, these as-is based appraisals are the bread and butter appraisal they are used to doing, and you will more often see on-time appraisals, and a MUCH higher percentage of at or above purchase price appraisals, than with the ARV based valuations.

For Conventional, there is no percentage/factor reduction where there is historical income figures to work with (reported a tax form)- the figures from the tax return are used.