Could cash-on-cash be the same as cap rate?

[Justin C.]

Noob question... If I'm paying cash for a property... does the math workout to be the same?  Purchase price is $17500 and will have about $25000 invested after renovations.

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Cap Rate:

$3,120/$25,000 = 12.48%

NOI/Purchase+Renovations

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Cash on Cash

$3120/$25000 = 12.48%

NOI/Cash Invested

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Is there something wrong here?

[Paul C.]

You got it right!  Cap rate is the return without leverage.  So by definition, the cap rate is the cash on cash return when no leverage is used.