Deal by deal return expectations vary greatly by the specific property and the business plan. Stabile properties may yield an attractive quarterly distribution yet return less on a sale or refinance vs. a heavy value add deal may return slim quarterly distributions until the refinance returns capital and boosts those returns as the property may have increased vacancies during the renovation period.  We target 7-8% quarterly preferred returns and a targeted internal rate of return of 12% or greater. Cash out refinance vs sale as loans aren't taxed because it's a loan not income. Sales trigger capital gain taxes.