Cash on Cash Return on Investment
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.