ROI with 25% down Calculation Question

[Samantha M.]

In the above image how is the ROI with 25% down being calculated to come to the answer of 16%? If someone would show some brief steps as to how they are arriving at this figure it would be greatly appreciated.

Since this is a leveraged calculation I assume this is a using a hard money loan. If that is the case what all is included with the 25% down payment? Extra closing costs, repairs, and some of the purchase price? Is it even calculating in the refinance cost to get out of the hard money loan?

[Jon Holdman]

No idea exactly what they're doing. $9,000 (annual cash flow) is 16% of $56,250. So that $56,250 probably includes the 25% down plus some other costs. But from what this image shows, I have no clue how they came up with that number.

This is why I would never use someone else' spreadsheet.

A dead simple ROI calcaluation for a rental is:

Cash on cash return = (((rent * 50%) - P&I) * 12) / (cash invested)