ROI versus cash on cash

ROI versus cash on cash

Salt Lake City, UT · Member since 2013 · 43 posts · 2 votes

I am looking at various investment opportunities including syndicates, limited partnerships and other sorts of deals to join. It would be ideal to be able to compare apples to apples, but it doesn't seem to be working out that way. Some deals discuss an IRR estimate, others speak about preferred cash returns and then capital appreciation. If I was a math guru, I could probably plug capital appreciation estimates and CoC estimates into a formula and figure out IRR, but my calculus skills aren't that good. Does anyone have a suggestion regarding how to figure this out? I looked through my book by Frank Gallielli but couldn't figure out the answer to this.

Thanks,

Jeffrey Kovnick

0Reply
27 views

Most Popular Reply

Visalia-Fresno, CA · Member since 2009 · 1k+ posts · 863 votes
12y

Cash on cash return is what I use...

Monthly Cashflow x 12 / Dowpayment(or total cash in the deal) = Cash on Cash return.

I like to see any where from 15% to 25%. I have a few that are inifinite because I did a cash out refinance and have no money in the deal.

See this reply in the discussion

25 Replies

Jump to latestLatest
    Join the conversationCreate a free account to reply, vote on answers and follow this thread.