Cash on cash - include cash out refi?

[Bryan Hockett]

I'm trying to calculate investor returns using a cash on cash number which includes investor preferred returns plus percentage of net income. My project will allow a cash out refi to fully payback the invested capital to investors in year 2 or 3. Given that, would the cash on cash formula include the capital paid back to investors from the cash out refi? After which investors would still own their % of equity in the property, thus % of income.