Did you know….tidbits of RE Investment knowledge?

by | Jan 5, 2023

CASH ON CASH RETURN

Also called the equity dividend rate, the cash on cash return is calculated by dividing the cashflow (the net operating income) (before tax) by the amount of cash initially invested.

To calculate the expected Cash-on-Cash (CoC) return for an investment, you simply divide the before tax cash flow (BTCF) by the equity invested (Equity Invested) as of the end of the period.

Watch this video to learn more:

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