Cash on Cash Return of 5 to 7 percent is possible in 2026?

In U.S. real estate investing, a Cash on Cash Return of 5 to 7 percent is generally considered average, while 8 to 10 percent is often considered good.

However, over the past year, I have personally analyzed more than 2,000 properties, mainly in the Midwest, and I have struggled to find even properties that generate more than a 6 percent Cash on Cash Return.

In some cases, the numbers can work if a property is purchased for around 40 percent below its asking price on sites like Redfin. But realistically, opportunities to buy properties at such a steep discount are extremely rare.

This has made me wonder whether many of the people who became successful and achieved financial freedom through real estate investing simply bought properties in a very different market environment.

When home prices were much lower and interest rates were also low, it was possible to generate strong cash flow. But in 2026, with both property prices and borrowing costs significantly higher, I wonder whether it is even possible to replicate the strategies that worked in the past.

Is achieving financial freedom through real estate investing still realistic in 2026? Or were many of the success stories we hear about largely possible because of the market conditions at the time?