Real Estate MathInvestment_calculationsMEDIUM
An investor purchases a property for $800,000 with $200,000 cash down. The annual pre-tax cash flow after debt service is $24,000. What is the cash-on-cash return?
Correct Answer
C) 12.00%
Step 1: Cash-on-cash return = Annual cash flow ÷ Cash invested = $24,000 ÷ $200,000 = 0.12 = 12.00%.
Answer Options
A
3.00%B
8.33%C
12.00%D
30.00%Why This Is the Correct Answer
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Deep Analysis of This Real Estate Math Question
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Background Knowledge for Real Estate Math
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Real World Application in Real Estate Math
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