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460: Side Hustle Showdown: Buying a Business vs. Investing in Real Estate
The Side Hustle Show
What's the Average Cash on Cash Return?
In real estate, the cap rate is 6 to 7% un leveraged yield on an annual basis. A little bit higher if the project is going to require a little more love and fixing up before it's suitable for rent. In small businesses, you can get 8-10%. The interesting part about buying a small business is, let me caveou ot wat. This is saying there's more risk in some ways, because, you know, you have a hard asset with real estate riht.
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