10.5% Cash on Cash Return 987K - 5 Million Leverage

[Joshua Drummond]

Hey All. I thought I would share this cool package with the community that we put together for an Investor last week on Friday. We are set to close on it this week, I thought some feedback from the BiggerPockets members would be ideal when going over the final numbers.

I am usually handling our off-shore investments, and those numbers are typically higher than the Cash on Cash returns in the United States. As most people pay all cash for Private Islands, and Off-shore villas this is slightly different. So here are some numbers, my question is are these cash on cash returns high, low? Thoughts on the overall numbers? Value of assets to estimated cash flow much lower than the cash on cash returns, but what is someone who leverages this amount typically see from a asset value to annual net ROI percentage.

Our Investor is very excited about this, hopefully he will jump on here to join the conversation - If I can help him succeed even more by benefiting from the feedback from the community, its a win for everyone.  Its so cool to work with a community such as this and meet new people everyday. I have helped over 6 members start positive cash flow off properties in and out of the United States. I am grateful for what everyone has helped me learn in such a short period of time, and I look to continue to grow and build positive relationships day in and day out! Thanks everyone for feedback and most importantly your time. 

Investor Package - 5 Million Leverage (1 Million Cash)

25 Homes - Dallas, Kansas City, Houston Markets. 

Financials Total:

Total Cash on Cash Return ($997,730) – 10.4%

- Total Cash out of Pocket for Down Payments – $861,200

- Total Cash out of Pocket for Closing Costs/Title Insurance +fees/Hazard insurance/Lender Fees/Recording Doc Fees/Any HOA/misc. costs. $136,530

- Estimated Monthly Net Cash Flow – $8,653.67

- Annual Estimated Cash Flow - $103,844.04

- Total Value of Assets – $4,552,000