LP COC Calculations

[Balkar Singh Kang]

I'm currently immersed in "The Multifamily Millionaire" Vol II by Brian Murray and Brendan Turner. On Page 235, a calculation for Cash-on-Cash (COC) return for Limited Partners (LP) caught my attention. I'm seeking assistance to understand the correct percentage.

Consider the following scenario:

• Invested Equity: $3,412,095
• Cash Flow after debt service and capex: $243,756
• Limited partner COC return (@ 7% preferred +70% equity share)

Despite these inputs, the calculated COC is reported as 6.66% for the first year. I'm puzzled and would appreciate clarification on how this COC percentage is derived. If anyone could provide insight, it would be greatly appreciated.