When doing a 1031 Exchange, how do I calculate CoC Return

[Adam Conrad]

If Cash on Cash Return is...

CoCR = (Rent - Operating Expenses - Loan Payments) / (Down Payment + Closing Costs + Renovations)

And I'm using a 1031 Exchange to upgrade from one property to the next, does that mean my Down Payment is 0 if nothing comes out-of-pocket for this property? What if I use the loan to handle renovations, so it goes into my loan payments, does that just mean I increase the Loan Payments section and Renovations = 0 as well?