Cash on Cash Return Increases Over Time? BP Rental Property Calc

[Steve Puglisi]

A few questions on the BP Rental Property Buy and Hold Calculator;

Why does the Cash on Cash ROI return increase over time? Rent increasing assumptions?

How is the Annualized Total Return Calculated? and why does it go down over time?

Is there a reference document on BP somewhere for this "Analysis Over Time" section?

[Bill B.]

Cash on cash should go up over time (you can test your rising rents theory s I’m sure there’s a spot you’re entering rent increases as a percent (put 0%).

On the other hand, ROE: return on equity will go down as you’re adding equity and only saving interest on paydown and generating no extra “income” with appreciation. Until sale time.