Cash-On-Cash Return - Business concept of the day
Business Development
324 week ago — 1 min read
Definition: The cash on cash return measures the annual return the investor gains on the total value of property paid. It measures the percentage of pre-tax inflows received for a year over the total value of the property.
Example: 10,000 rent per month on a 10,000,000 valued property will give you a 1.2% cash on cash return for the year.
Business insight: Comparing this figure between several other real estate investments can help you evaluate performance of your real estate assets and help you make prudent investment decisions.
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