You are not even scooping your initial investment so your cash on cash return is negative.

The account does not have to be an interest bearing account but if it is, then a portion of that interest earned has to be returned to the tenant annually.

I see investors all over the country making 30%+ cash-on-cash return, BUT there are also people throwing money out of the window.

I looked at my return for you, hope this helps but check with your own CPA.- Unrecaptured falls under section 1250 and is treated as ordinary gains and capped at 25%- My capital gain from appreciation and improvements under section 1231 was treated as a long term capital gain since I owned both assets over a year.Hope this helps.

There will likely be a partnership return required where you flipped a house with a partner and lost $120,000.If you sold the other property within the same partnership, it will also be reported on that partnership return.The net result to you is that you will receive a K-1 showing your income / loss which you then use to report on your individual return.If you made no money within the same year, you likely pay no additional taxes / get no additional refund.Best of luck.

Hi Tom,I love crunching numbers and thinking about returns. 

. - Established and actively managed AirBnB's will continue to be consistent income producers with a gradual growth in returns. 

What I mean is, some investors look strictly at cash on cash return, some look at cap rate, others just want to make sure their mortgage is covered.

Some lenders offer discounts to return borrowers so maybe look into both flip and DSCR rates when finding a lender. 

Once pre-approved, gather your financial documents like pay stubs, tax returns, and bank statements.