Comparing cash on cash return formula and the Cap Rate

[Graden Ostler]

In dealing with some of these basic investing formulas, I noticed a similarity on the cap rate and the cash on cash return formulas.

I’d like your thoughts on it and how or why it might be beneficial to know this:

If you are trying to find the cap rate and the cash on cash return percentage on a property it will be the same rate if you pay cash.