Vs cap rate
Cap rate is unlevered (NOI ÷ price).
Cash-on-cash reflects financing and cash invested at closing.
Key takeaways
- Use actual cash invested including closing costs
- Compare to alternative yields and mortgage cost
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Apply these concepts with formula-based tools on Calculator Factory.
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FAQ
- Pre-tax or after-tax?
- Investors often quote pre-tax cash-on-cash; model taxes separately for your bracket.