Mike Welch, REALTOR
Re/Max Preferred Associates
mwelch@metrotoledohomes.com
Licensed in Ohio & Michigan
Evaluating The Investment
Cash on Cash Return
| Cash on cash return is the purest measure of an investment. It is the amount of positive cash flow in relation to the actual "cash out of pocket" that is required to acquire an income producing property. One of the important keys to creating wealth is the ability of the investor to acquire a strong cash on cash return and compound that return by reinvesting it in like manner as often and consistently as possible. Financing is the key to leveraging your cash on cash return higher. There are other factors that can increase cash on cash return too. A balance between risk and higher cash on cash return needs to be considered on the structuring of real estate deals. |