10% cash on cash return, Common in Bay/NY/SF?

Google RTX
Aug 12 26 Comments

Wondering if this is very high or just normal for property in decent but not ultra luxurious area. Midwest has great returns but not interested in property mansger right now.

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TOP 26 Comments
  • Lyft done2
    Itโ€™s very common, circa 1975
    Aug 12 0
  • Salesforce unduless
    Show me even 1 cash flow positive property with 20% down. These cities are appreciation game, not cash flow
    Aug 12 17
    • Lyft done2
      You seem to be ignoring all the details in this conversation. Are you saying you got 80% loan to value on an investment mortgage from Wells Fargo? Because I donโ€™t believe thatโ€™s true
      Aug 12
    • Salesforce unduless
      Alright lets set some definitions straight because some details are getting ignored. To make 10% cash on cash for 20% down on a 500k property, you need to have monthly positive cash flow of $833. This is proper net positive cash flow including capex, maintenance, mortgage, HOA, property tax, any other shit that a good investor factors in a month. Thatโ€™s 10% return on 100k down which is 10k a year. Are we on the same page?
      Aug 12
    • Lyft done2
      Yes, and to be clear we are intentionally Not considering appreciation or principal paydown for this metric.
      Aug 12
    • Facebook public2
      Haha what detail am I ignoring? The post asked for am example so I gave one. Yep 20% down wells. 20% is pretty standard even on investment, they just have slightly higher rates before relationship discount. This is funny but feel free to ignore or not believe me. I was just providing an example for unduless. I guess depsite my number of properties I am not a good investor as I do not factor maintenance as that is inconsistent even over decades of renting so all that I factor is my handyman retainers else same page. Correct, never consider appreciation at all. To realize appreciation you would have to sell real estate which you never do :)
      Aug 12
    • New Ncvq12
      @unduless is the 10k a year pre-tax? This could vary based on what you have your rental property under( llc most likely, c or s Corp, or sole proprietorship). If you mean 10k after fed and state taxes I really really doubt it's possible, otherwise yes
      Aug 12
  • Lyft done2
    ๐Ÿ˜‚
    Aug 12 0
  • Lyft done2
    You need at least 25% down for conventional financing investment property, Rate will be slightly higher as well
    Aug 12 1
    • Google RTX
      OP
      25% at 30 yr. Rates are 4% or lower now.
      Aug 12
  • Even the most affordable condo generates a negative cashflow. As mentioned above, Bay area is an appreciation game but has hit the brakes for now.
    Aug 12 0
  • Facebook public2
    Slightly lower than average but fine.
    Aug 12 0
  • Genesys 9823
    Are you talking about renting out
    Aug 12 0
  • LinkedIn breakfast
    Tell me when you find one
    Aug 12 0