The return rates on rental properties can be all over the map. I have surveyed many sets of investment properties, and have found that there is a wide variety of return rates.
The best way to determine the rate of return (also known as the CAP RATE) is to obtain financial documents from the seller detailing income and expenses. Then use my free calculator to figure out the CAP RATE and GRM. The CAP RATE should probably be above 6%, and the GRM should be below 100. If the sellers are unwilling to provide financial documents about the property, you should be extremely wary and ask yourself, Why will Mr. Seller not give me the financial documents? Here is more information about the CAP RATE and GRM.
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