Updated over 10 years ago on . Most recent reply
Cash on Cash return
I have a single family home rented and I want to make sure my cash on cash return calculations make sense:
Total Cash out (includes, down payment, renovations, closing costs) = 88,700
Expenses I include: Insurance, taxes, landscaping, pool maint, mortgage payment. Are there other expenses I should add? I don't seem to have any others.
Annual Net profit = 8,928
Cash on Cash return = 8928 / 88700 = 10.1%
Does this make sense? Also, what is a target cash on cash return people are getting or striving for in today's market? Any comments and thoughts will be much appreciated!!