All Cash Buy with Line of Credit from Investment Portfolio

[Nico Roe]

Hi Everyone,

I am getting astronomical cash on cash return rates and they can't be right. If I am utilizing a LOC against an investment portfolio @ 4.25% Interest with no term, and financing the entire deal, would my Cash on Cash be determined by dividing my annual revenue by what I paid annually to carry that LOC debt?

How do you determine cash on cash if you finance the entire deal?

Am I crazy, my only out of pocket expense is what it costs me to maintain that debt?

Thanks for the help!

@DavidGreene is the man!