Stefano
Mon Sep 16 2024
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5 answers
1590
What is the cash-on-cash return on a $2000000 property with a down payment of $500,000 and $15000 of monthly rental income?
Could you please clarify for me the calculation method for determining the cash-on-cash return for a property investment? Specifically, if I invest $500,000 as a down payment on a $2 million property that generates $15,000 in monthly rental income, how do I compute the cash-on-cash return? Is it a straightforward formula involving dividing the annual net cash Flow by the initial cash investment? And how does one ensure accurate accounting for expenses and potential fluctuations in rental income?
