Cash on Cash Return on Investment

[Ariel G.]

Hi. I'm looking for the experimented people's help. I'm looking for your feedback on CoCRoI calculation.

CoCRoI: (Cash Inflow - Cash Outflow) / Cash Outflow

Being....

Cash inflow

Selling price - pending mortgage = 

Selling price - (initial mortgage - total capitalized amount to date)

Cash Outflow

Money down + closing costs (bank+ RealEstate agent fees) + administration costs + taxes paid + maintenance costs + total interest payments paid to date (monthly payment - capitalization)

1. Am I missing, duplicating, erring in something

2. Whats according to your knowledge and as well your experience is a good or realistic percentage for CoCRoI.

3. Is this useful for analyzing a potential deal or also for a deal that you already have?

4. Is this the best index to analyze a REI? Is there a better one according to your experience? Or depends on the alternative action you are thinking to take to decide which index to use?

Thank you very much.

Ariel.