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Updated over 5 years ago,
Cash an Cash ROI vs Annualized Total Returns
Hello! I'm playing around with the BP rental calculator and I'm trying to understand the table.
I'm curious about:
1) What does the changing Cash on Cash ROI tell me over the years?
2) How does COCROI differ from the Annualized Total Return (e.g. how do I use it?)?
3) At year 30, how can I make a $460k profit on a house that's valued at $240k?
4) I'm trying to do the math to understand each of the numbers, but I can't get the calculation for the "total profit if sold" correct. Any tips?
Sorry, that's a lot of questions. Any help would be much appreciated!
David