Cash on Cash Return

[Glenn Willeford]

Does the COCR change over time or is that relevant? For instance, if it is determined that the COCR is 20% before purchase and rents are increased during year 2 and the COCR increases by 5%, is that relevant and should that potential increase be considered when evaluating a property?

[Jesse B.]

I think you have it stated correctly, coc return helps you determine whether or not to invest as compared to other opportunities, but return on equity is to help you decide if you should stay invested.