Real Estate Investing

Cash-on-Cash Return

Definition

What is Cash-on-Cash Return?

Annual pre-tax cash flow divided by the investor's cash equity.

Example in practice

₦2 million annual cash flow on ₦20 million cash invested gives 10%.

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Land and buildings held for use, rental income, development, or appreciation.

Property designed mainly for people to live in.

Property used for business purposes, such as offices, shops, or warehouses.

A REIT performance measure that adjusts net income for real-estate depreciation and certain property-sale gains.

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