Real Estate & Mortgages

Intermediate

Cash-on-Cash Return

Annual cash flow relative to actual cash invested.

Formula

CoC = \frac{ACF}{I_{cash}} \times 100

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Variables

CoCCash-on-cash (%)

ACFAnnual pre-tax cash flow

I_{cash}Cash invested

Example

$9k cash flow on $90k down: CoC = 10%

Did You Know?

Leverage boosts cash-on-cash return — using a mortgage means less of your own cash is tied up.

real estate cash flow investment

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