Cash-on-Cash Return and Its Limits

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🎙️ Episode #462 – Think a rental is a winner because it "feels" right? Most investors get this part wrong. Coach Carson breaks down the quick, napkin-math framework that reveals whether a property actually cash-flows, builds equity, and deserves your time.

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▶️ Next Episodes:

How to Analyze a Duplex Rental Property (Real Life Example)

https://youtu.be/MPbuwBH_ZDo

This is my Ideal Rental Property (size, materials used, buy box):

https://youtu.be/r5C_Lvw5aWw

📄 Show Notes: https://www.coachcarson.com/runthenumbers/

🎬 Timestamps:

• (00:00) - Is this rental actually a good deal?
• (00:20) - Back of the envelope analysis
• (01:43) - Why own rentals: freedom and wealth
• (03:00) - How does your rental property actually make money?
• (06:50) - Rent-to-price ratio and the 1% rule
• (10:01) - Analyze with NO debt
• (14:23) - Unleveraged yield and cap rate
• (17:07) - What is a good unleveraged yield?
• (21:43) - Analysis with debt
• (29:57) - Cash-on-cash return
• (33:45) - Equity growth
• (36:22) - How to grow your equity
• (40:35) - Passive appreciation and loan paydown
• (42:14) - How to practice on your own
• (45:06) - How to analyze a duplex rental property (real life example)

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