cash-on-cash return

(redirected from Cash-on-Cash Returns)

Cash-on-cash return

A method used to find the return on investments when there is no active secondary market. The yield is determined by dividing the annual cash income by the total investment. See: Current yield or yield to maturity.

Cash-on-Cash Return

A way to calculate the rate of return on an investment, especially in real estate. One calculates the cash-on-cash return by dividing the cash inflow on the investment in a given year by the cash outflow originally made. For example, if one buys a property for $100,000, this amount is the denominator when calculating the cash-on-cash return each year.

cash-on-cash return

See cash-on-cash.

References in periodicals archive ?
Conversely, if the apartment generates a significant positive cash flow, the asset is priced at 6 to 8 percent actual cash-on-cash returns, with the residual value of the apartments as an additional return to investors or up to 35 percent of market value.
In today's rate environment, this translates into an 8 to 10 percent cash-on-cash return; stable but not exactly the kind of returns that many opportunity investors are seeking.
In order attract significant investment capital in today's "Bear Market," 10 percent to 12 percent cash-on-cash returns will have to be achieved coupled with, reasonable appreciation and safety to peak buyer interest.
Rents were rising, and buildings purchased in the late 1970's were showing cash-on-cash returns far better than those of stocks and bonds.
Cash-on-cash returns based on today's acquisition costs will look impressive when compared to the returns on stocks and bonds.