Find Amazing Real Estate Deals Using Cash on Cash Return

#cashoncashreturn #realestate #Investing
My mission in this video is to show you the right way to calculate Cash-on-Cash Return in Real Estate. Cash-on-cash return is a very useful metric used by investors when analyzing and comparing investment opportunities. In real estate specifically, the cash-on-cash return is a ratio of a property’s pre-tax cash flow relative to the amount of cash invested in the property. The most common version of Cash on Cash Return for rental properties that I see circulating on the internet does not include the amount of principal that is being paid down on the loan on the property. This is a critical piece of income in addition to the cash flow that the property is generating that will impact your cash-on-cash return and I make sure to include it in my calculation. There are also a lot of details missing from the typical cash-on-cash equation when it comes to expenses and purchase details that I made sure to include in my calculation. My spreadsheet also calculates the cash-on-cash return after any mortgage on the property has been paid off so that you can see what you return could look like in the future.

You can find my spreadsheet for calculating Cash-on-Cash Return for Real Estate here: https://www.etsy.com/InvestingAddiction/listing/1352445496/cash-on-cash-return-calculator-for-real?utm_source=Copy&utm_medium=ListingManager&utm_campaign=Share&utm_term=so.lmsm&share_time=1670909887516

And a special version of the spreadsheet for calculating the Cash-on-Cash Return of Short-Term-Rentals can be found here: https://www.etsy.com/InvestingAddiction/listing/1352430816/cash-on-cash-return-calculator-for-short?utm_source=Copy&utm_medium=ListingManager&utm_campaign=Share&utm_term=so.lmsm&share_time=1670909933566

Disclaimer: I am not a financial advisor. This video is for entertainment purposed only. Please make sure to do your own research before you make any investment decisions. Thanks for watching!

Видео Find Amazing Real Estate Deals Using Cash on Cash Return канала Brandon Built