Today on the Finance Flash Go! podcast, I’ll share my favorite metric for evaluating investment real estate properties, cash-on-cash return!
Cash-on-cash return (CoC) is the percentage of annual cash flow that a property puts in your pocket divided by the amount that you paid out-of-pocket for that property.
I pursue properties that reach an expected CoC return of 10% or greater. If it meets that mark, I am going to make an offer. If not, I’ll pass.
Let’s discuss.
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