Increasing cash on cash return

[Danny Day]

Lately I've been dabbling the numbers to maximize the cash on cash return for rental properties.

I want to run this sample deal to make sure my numbers are correct. From what I can see a hard money > refi deal maximizes the cash on cash return.

Purchase Price: $47,000
Repairs: $5,000
All in: $52,000

Rental rate: $900 / mo - $10,800 / yr
Cash flow: $450 / mo - $5,400 / yr (financed)

CONVENTIONAL - 25% DOWN
Down payment: $11,750
Repairs: $5,000
Closing Cost: $750
Inspection: $300
Total Expenses: $17,800

Cash on cash return: $5,400 / $17,800 = 0.30

CASH -
Purchase: $47,000
Repairs: $5,000
Closing Cost: $750
Inspection: $300
Total Expenses: $53,050

Cash on cash return: $10,800 / $53,050 = 0.20

HARD MONEY > REFI 30 YR
Purchase: $1,560
Appraisal: $500
Inspection: $300
Closing Cost A-B: $750
Closing Cost B-C: $0
Total Expenses: $3,110

Cash on cash return: $5,400 / $3,110 = 1.73

Am I doing this correctly? I know I didn't allocate for anything on the taxes , etc on the cash deal so that number will be slightly lower. What I'm more interested in is the hard money to 30 year refinance.

[Account Closed]

debt service isn't included in the 50%...that's reserved for taxes, insurance, management, vacancies, repairs, maintenance, utilities, trashouts, cap ex..etc.....