What kinds of returns are you getting on your SFR Rentals ? - Posted by DougO(NM)
Posted by DougO(NM) on February 01, 2000 at 18:52:27:
I realize that every deal is different, but all things being equal, (?) what kinds of returns are “normal” for SFR rentals ? I found a deal today on a VA Repo, and I have a private investor that will fund most of the deal. (I will only have to put in $5-7K) It will be a keeper for me, as it’s a MH on it’s on lot, we are in avery very tight area for these properties, and besides, thats my business! I know I can rent it, I might be able to sell the home and rent the land as well, but I’m pretty sure it’s been declared “real property”, so it’s not two seperate items. Anyway, based on what I know I can rent it for, debt service, taxes, insurance, etc. it looks like it will give me a cash on cash return of around 14% and a return of 12% if it were free and clear. This looks ok to me, especially as someone else gets to pay it off for me. Comments ? Am I missing anything ? Thanks for your input.