Cash on cash return on investment

[Davidson Francois]

Greeting everyone I don’t post on bigger pockets as much as I should due to the fact I’m still trying to learn more about real estate. My question to you guys is if a property has a positive cash flow but the cash on cash return is pretty low would you still take a chance on it???

[Joe Villeneuve]

No.  The  CoCR tells you how quickly you will recover your cost (how much you spent out of pocket) on a property.  The lower the number, the longer it takes, and the slower it takes as the more it costs to move forward.