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Minimum Cash on Cash rate & Cap rate

deco

New Forum Member
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Aug 26, 2018
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9
What is the minimum cash on cash rate and cap rate a person should accept on an investment property on Southern Vancouver Island?


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Caleb West

Multi Family Commercial|Collaborative Office|
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Feb 7, 2017
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122
Island buys are usually appreciation heavy and cash flow poor.


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Cory Sperle

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Sep 1, 2010
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The answer is it depends. What type of income property are you contemplating? Returns differ greatly on what you buy and where. Are you buying a condo, house, duplex, apartment, commercial property? Keep in mind your 'projected' cash on cash return almost never matches reality. For the most part your cash surplus will be zero if you have a large mortgage. You could also buy a property that looks good with massive maintenance to go with it. Best bet is to buy under value or in areas in transition. If a defined cash on cash is desired a REIT may be a better option.
 
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