Question on 2% test

[Aaron Schwartz]

Can anyone tell me what the metric is called to explain cash flow per month as a percentage of purchase price? I think it would be a useful tool for investors to go by, rather than saying "this property passes the 2% test," there should be a name for this like the (fill in the blank) rate. I know cap rate is on an annualized basis but i have never heard of a term that tells investors cash flow as a percentage of purchase price. Does such a term exist?

[Elizabeth Colegrove]

I use cash on cash, the percent earned based on how much I put in the home. It lets me look at my returns based on my down payments since I am a leverage lover ;)