Q: Determining your COC with leverage

[Tony Ferris]

Hi guys,

this is my 1st post.

I'm trying to determine how you calculate your cash on cash with leverage.

Example: I purchased a mobile home park $375,000

with $75,000 down seller carry @ 7%.

Monthly CF is $4,700

[J Scott]

If your monthly cash flow (NOI - Debt Service) is $4700, than your annual cash flow is $56,400 ($4700 x 12).

COC is Cash Flow / Investment, so:

$56,400 / $75,000 = 75.2%