Cash on Cash Return

[Jane Bigcas]

Hello,

Just looking for an explanation of this term: Cash on Cash return. I know it refers to % of return a rehabber expects but I just need further clarification.

Thank you so much.

[J Scott]

Originally posted by @Jane Bigcas:

Thanks J, Cal and Dusty!!!

As REI's what is your cash-on-cash % expectation?

For more passive investments, like rentals, I target minimum 15%.

For more active investments, like flips, I target minimum 30%.