What should you expect for a cash on cash return? #shorts #shorttermrentals #airbnb #realestate

Let's talk about what you should actually expect for a cash on cash return. Let's start with long term rentals. It used to be in the not so distant past that you might be earning single digits if you're in a decent market. We used to strive for 10% maybe three, four years ago, but that just became less and less even with lower interest rates in the recent past. Now, I would say, unfortunately, again, all markets are different, but you're probably looking at like a 0% cash on cash return with these long term rentals. Again, that is not for every market. I know there's always opportunities, but interest rates have doubled. And if cash on cash returns just recently, six months, a year ago, were very low to begin with, well, then they're probably zero or even negative.