What Is the Cash on Cash Return Formula?
Abstract
Cash on cash return can tell an investment property’s profitability. Real estate experts believe buying a rental property will make a good investment in 2022. Cash on Cash Return is a rate of measure that determines how much returns you can expect from an income property. It includes your cash down payment, closing costs, and other expenses that you’ll pay for in cash. To get the annual pre-tax cash flow. The annualPre-Tax cash flow, you need to take the annual cash flow in the mortgage costs. You can also deduct the cash flow in the annual net operating income.
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