When calculating cash on cash, does it include rehab cost and closing cost into the equation?
I do monthly income x 12m / down payment.
CoC should include all costs that go into acquisition, i.e. rehab, closing, inspections, down payment/purchase price...the more you add the more accurate it will be. However, if by monthly income you mean rent, I would consider that wrong since the rent is not actually a return since you will have to subtract monthly mortgage and various monthly costs.