Can someone explain to me exactly what cash on cash return is & how you calculate it?
cheersI thought we flogged this one to death not so long ago…
Simply it is the amount of cash you “physically” put into a deal, to the amount of cash you get back from it…
Therefore for positive geared propeties the cash on cash return can “potentially” be INFINITY… However I remember saying that it does not necessarly mean that “positively geared” properties are the best deals though… You also need to look at the TOTAL cash on profit…
For example the CoC return might be infinity put your total cash profit for the year may ONLY be $1,000.
Whereas another CoC return may be 50% but this time the total cash profit may be $10,000.*********
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