308: Rookie Reply: Don’t Chase Cash Flow! Use THIS Metric to Analyze Your Deals
Real Estate Rookie
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How to Use a Line of Credit as a Down Payment for an Investment
Cash on cash return is a fraction. At the top of your fraction, you have profit for the year,. How much profit did you generate over a 12 month timeframe? And in the bottom in your denominator, you have your cash invested to acquire that property. So say that you invested $10 into a property. And over the course of that year, you got back one dollar. That'd be a 10% cash from cash return.
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