Cash on Cash Return Guides

What Is Cash on Cash Return? The Rental Investor's Yield, Explained

Cash on cash return is the annual cash a rental pays you divided by the cash you put into it. What it measures, what it leaves out, a worked example, and when it is the right metric to use.

Cash on Cash Return Formula: How to Calculate It Step by Step

The cash on cash return formula and how to build every input: gross income, vacancy, operating expenses, NOI, debt service and cash invested. Three worked examples: a financed rental, an all-cash purchase, and a short-term rental.

What Is a Good Cash on Cash Return on a Rental Property?

A good cash on cash return on a financed rental is 8 to 12%. Where that benchmark comes from, how it shifts with market, interest rates and property type, and why the assumptions behind the number matter more than the number.

Cash on Cash Return vs Cap Rate: What Each One Measures

Cap rate measures the property. Cash on cash return measures your deal. How the two are calculated, why they split when you add a loan, what the gap tells you about leverage, and when to use each one.

Cash on Cash Return vs ROI vs IRR: Which Return Are You Measuring?

Cash on cash return, return on investment and internal rate of return measure different things. What each includes, how they diverge on the same property, a worked example, and which one to use for which decision.

How to Increase Cash on Cash Return: 9 Levers, Ranked by Cost

Nine ways to raise the cash on cash return on a rental, with the dollar effect of each on a $250,000 example: price, rent, added income, expenses, management, rate, down payment, interest-only, and seller credits.

Cash on Cash Return and Leverage: When Borrowing Helps and When It Hurts

Borrowing raises cash on cash return only when the loan's annual cost is below the property's cap rate. How to check that in one comparison, why it flips at high interest rates, and what it means for how much to put down.