Posted by Sailor on August 18, 2006 at 17:34:26:
I wasn’t counting interest–that’s the gravy.
Tye
Cash on Cash Returns - Posted by Bryan-SC
Posted by Bryan-SC on August 18, 2006 at 09:34:38:
What kind of Cash on Cash returns do you gurus use as a rule of thumb before doing a deal?
I know what I use for residential rentals but MHs are new to me.
Thank you for the feedback.
Re: Cash on Cash Returns - Posted by Anne_ND
Posted by Anne_ND on August 18, 2006 at 11:33:37:
Take what you use for residential and increase by an order of magnitude. That’s the yield you should be looking for on Lonnie deals. No kidding.
Anne
Re: Cash on Cash Returns - Posted by Dave Fl.
Posted by Dave Fl. on August 18, 2006 at 14:52:11:
Me dumb, whats “an order of magnitude”?
Thanks
Dave Fl.
Re: Cash on Cash Returns - Posted by Sailor
Posted by Sailor on August 18, 2006 at 15:15:50:
I like to double or, preferably, triple, my $$$ w/out leverage. It is
more difficult to do in regular RE (though I once quadrupled in 10
mo. on a raw land deal). That’s why we get spoiled doing MH
deals. It also helps that we can do the deals w/out escrow (a form
of purgatory) & our returns come in fast.
Tye
Re: times 10 ~NT~ - Posted by Dave Fl.
Posted by Dave Fl. on August 19, 2006 at 05:20:42:
So, is it a simple " X 10 " or is it to the closest power of 10?
Thanks
Dave Fl.