Great question. It's going to vary market to market, and even more so - niche by niche. Of course, we all want a stable deal, room for growth, and a heavy profit margin- but what we're actually going to get at the end of the day is going to vary.
To get a feel for what the market is looking for- my advice would be to dive deep into the specific market you are talking about. Go to meetings, join groups, and attend conferences and seminars specifically about the area of real estate that you are asking about. You will get a grasp of what the market wants very quickly.
Also, keep in mind, many sophisticated/institutional investors may not be as interested in specific cash on cash, caps, or IRRs. I know for myself and others of my colleagues, we look at other factors other than income to make a buying decision. Sometimes, we'll look at property that doesn't make sense from an income standpoint- but, we know that the city is going to be spending millions in renovations in that area, etc.
Jon, all the best to you my friend.
Jun 11, 2010