What’s your ROI threshold/target to consider an opportunity a worthwhile real estate investment?

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I have a short term rental that was $300k down but nets $60k a year plus $28k in equity and then appreciation. Seems good or am I missing something?

When I started I was expecting $20k net so it exceeded my expectations. I’m interested in doing it for another property but wasn’t sure what my floor should be for ROI.

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Thank you for the thoughtful response. We went into the investment as a vacation home we’d use for a couple weeks a year but then also rent out. So my focus wasn’t just ROI but it was a factor. Now seeing how well it did I was considering another investment property but more focused on pure ROI so helpful to hear others have as a minimum to have it feel worthwhile.

Agree with the thoughts on repairs. Thankfully the roof has a 50 year warranty but there are always tons of things that could go wrong. And COVID taught us the importance of having a cushion in your cash flow to handle unforeseen situations!

I look at $ profit per door (generally over $200) and then 15+% cash return. I self manage so the $ per door is more important to me. A rental might have an amazing % return on paper, but if that is only netting me $100 a month, it isn’t worth the potential stress that a renter could cause me.

Va and Md

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