How Much of a Return Should Your Investment Property Produce?

How Much of a Return Should Your Investment Property Produce?

Episode #1,044

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What makes a “good” real estate deal in 2025 and beyond? How much of a return should your investment property be producing? Are real estate returns good enough in this tough housing market to beat out other performing assets like stocks? Today, we’re sharing our exact investing criteria, defining what makes a “good” real estate deal to us, and how you can use key indicators to identify deals worth the effort.

We’re breaking this episode into a few parts as we touch on the primary types of investment properties: long-term rentals, short-term rentals, and house flips. Garrett Brown is our resident vacation rental expert and shares how he’s routinely getting twenty percent (or greater) returns by reinvesting in his short-term rentals. Next, familiar face James Dainard discusses the unbelievable house-flipping returns he nets, but are they worth the risk?

Finally, Dave shares the metric he goes after when investing in long-term, low-risk rental properties. Plus, we’ll share when it’s a better use of your money to reinvest in your current properties vs. going out and buying new ones!

00:00 Intro
00:51 What’s a “Good” Return?
06:21 IRR (Internal Rate of Return) Explained
07:59 What Makes a “Good” STR Deal?
11:14 Flipping Houses (High Risk/Reward)
16:43 Long-Term Rentals (Low Risk)
23:17 When to Reinvest vs. Buy More
29:23 Do This NOW!


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