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Updated about 3 years ago on . Most recent reply

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Damien Cox
  • Granada Hills, CA
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Cash on Cash Return Question

Damien Cox
  • Granada Hills, CA
Posted

I just want to make sure my math is right on this regarding my COCR.

$93,600 gross rents - taxes/insurance,  - repairs (10% est.),  - Cap-ex (10% est.), - Property Management (10%), Vacancy (5% est.) 

net cash $53,196/ total invested ($264,000) * 100 = 20.15.  

  • Damien Cox
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    Chris Seveney
    • Investor
    • Virginia
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    Chris Seveney
    • Investor
    • Virginia
    ModeratorReplied

    Cash on Cash is the total amount of $ you receive every month after every expense (x12) divided by the total amount of cash you have in the deal.

    So lets say you put $100,000 down payment and you get $500/mo after all costs. 500x12 = 6,000 

    6,000 / 100,000 = 6% Cash on Cash

    • Chris Seveney
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    7e investments
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