BiggerPockets Real Estate Podcast
BiggerNews: How Much of a Return Should Your Investment Property Produce?
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.
39:03
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Evaluating cash on cash return is crucial for investors, helping them understand the efficiency of their property investments relative to cash invested.
- Understanding market demand and unique property features is vital for short-term rental investors to achieve desired cash flow and appreciation.
Deep dives
Understanding Cash on Cash Return
Cash on cash return is a critical metric for investors to evaluate the efficiency of their investments. It calculates the annual cash income generated by a property relative to the amount of cash invested, focusing solely on cash transactions without financing considerations. A cash on cash return can vary widely, from modest percentages to higher figures depending on the investment's performance. This measure is essential for making informed decisions about whether to pursue a particular deal, as investors assess what their return will be on an annual basis.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
