Calculating COC ROI For Rentals

[Brandon Geddie]

Hello all!

Let’s say you purchase a rental that takes 4 months to rehab and occupied. Now let’s say you want to do a look back at the end of the year and calculate what your actual cash on cash return ended up being on that property. Do you include the 4 months of vacancy which you are paying the mortgage out of pocket and include that into your cash invested along with down payment+fees+rehab?

Thank you for any input you have!

-Brandon