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Updated about 7 years ago on . Most recent reply

Calculate Reserves into Cash-on-Cash Return?
In reference to cash-on-cash return, when calculating how much money was invested into the property, should I include any money that came directly from me that I put toward the reserves? Even if after the first 12 months, the reserves were never touched, should I still include that as money invested?
I would assume yes since it's going to sit there in the reserves, and I will be treating it as if it cannot come back to me personally.
Perhaps if I'm able to pull out that money invested into the reserves at the end of the 12 months because I was able to inject rental revenue into there, then I would obviously not include it.