3min chapter

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742: How to Achieve Financial Freedom Through Real Estate in 4 Steps

BiggerPockets Real Estate Podcast

CHAPTER

How to Calculate Cash on Cash Return

Cash flow is if you take all the income from a property for rental property, that's rent and guests. You need to measure the cash flow as a percentage of your total investment. A decent deal was a 5% cash on cash return. But like I said, make sure that you're not taking on an excess amount of risk by doing it in a bad neighborhood.

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