a calculator for return cash investment when paying all cash

[Diego L.]

We are planning to move overseas, and in other to implement our income, we wanted to purchase a couple of properties. With that said, all calculators I find include mortgage, once I enter 0 amount. The whole final number goes out of whack. I am trying to find out the return on investment percent/rate. Can anyone direct me on the right direction?

[Matt B.]

if you are paying all cash and want to know the cash on cash return for a rental, the formula is 

return = monthly rent ÷ total cash investment × 12

example, you buy a house for 100k and rent it out for 1000/mo

1000 ÷ 100,000 = .01

.01 × 12 = 12% CoC return

if you include property taxes, management fees and other expenses into the equation you will get a more precise answer