Real Estate MathInvestment_calculationsEASY
An investor puts $110,000 of cash into a property and expects annual pre-tax cash flow of $18,000. What is the cash-on-cash return?
Correct Answer
B) 16.36%
Divide annual cash flow by cash invested: $18,000 ÷ $110,000 = 0.1636, or 16.36%.
Answer Options
A
611.11%B
16.36%C
116.36%D
1.64%Why This Is the Correct Answer
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