Quote from @Vadim F.:
Quote from @Mohamed Gharib:
Hi Everyone,
I am wondering what would be a realistic cash-on-cash return for a SFH in a B-class and above area in Cleveland If paying all cash.
Thanks in advance.
Personally, I would not focus on the CoC return if you are paying all cash. I would focus strictly on the cash flow. Also, instead of focusing on B-class areas, I would focus more on the C-class areas and perhaps get 1-2 duplex's in those areas for the price of 1 SFH in a B-Class area. Do the research on the areas that are getting tons of cash pumped into them right now.
Thank you, Vadim, for your input. Just to confirm my understanding, since I am making a cash payment, the cash-on-cash return is essentially an indication of the cash flow. For instance, if the $130k house generates a monthly cash flow of $800, then the cash-on-cash return would be 7.4%. Therefore, I believe that there is no discrepancy between the two measures. If the cash flow is positive, the cash-on-cash return will be favorable, and vice versa. right?