Cash on cash return for Phoenix

[Angela Cooney]

What is a good cash on cash return for a small multi family rental property in Phoenix?

[Ryan Swan]

@Angela Cooney Phoenix isn't as much as of a cashflow market compared to smaller cities in the midwest and parts of the south. Investing here is more about long term stability, rent growth, low vacancy, and if history continues, a lot of price appreciation over the years. You'd be disappointed if you compared CoC returns here to say, a property in Kansas City.

Cash on cash doesn't factor in the principal payments lowering your debt, nor equity gains through appreciation. 

In my opinion, it may be more productive to calculate ROI or IRR which would be a more complete picture of your returns, both while holding the rental property and when sold (making some assumptions for realistic year over year appreciation).