BiggerPockets Real Estate Podcast BiggerNews: How Much of a Return Should Your Investment Property Produce?
9 snips
Nov 15, 2024 
James Dainard, a seasoned real estate investor and author of 'The House Flipping Framework,' shares his insights on what constitutes a good real estate deal in 2025. He discusses the high returns from house flipping, weighing them against the associated risks. Garrett Brown, a vacation rental expert, reveals strategies for achieving impressive returns from short-term rentals. The conversation also covers crucial metrics like Internal Rate of Return (IRR) and when to choose reinvesting in properties over acquiring new ones.
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Cash-on-Cash Return
- Determine your cash-on-cash return for any investment.
- This helps assess the annual cash flow efficiency relative to your invested capital.
Understanding Cash-on-Cash
- Cash-on-cash return measures how efficiently investments produce cash flow.
- Calculate it by dividing annual profit by the actual cash invested, excluding financing.
Demand in STRs
- Consider demand and potential appreciation, especially in short-term rentals.
- Analyzing demand helps forecast growth and adjust cash-on-cash return expectations.
