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Updated over 8 years ago,

User Stats

468
Posts
85
Votes
Abdul Azeez
  • Real Estate Investor
  • Monroe Township, NJ
85
Votes |
468
Posts

Cash flow versus Cash on Cash

Abdul Azeez
  • Real Estate Investor
  • Monroe Township, NJ
Posted

Folks - I am running some numbers on listings and have the following question regarding cash flow versus cash on cash. Brandon advises a rule of thumb of $150/unit. I have also seen him advocate something greater than 10% on COC. When I run my numbers I am finding the following scenarios. How do I go about determining a good investment from bad based on these? Per unit cash flow seems good but COC seems low. If I need to use both of these metrics, I feel I will have no houses to pick in the market where I am (NJ) and I need to close down my real estate endeavors. Kindly advise. I am getting incredibly frustrated running numbers and I still have hundreds to go.

Property 1 - CF $557 COC 9.28%

Property 2 - CF 449 COC 5.22%

Property 3 - CF 287 COC 4.49%

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