cash-on-cash return(redirected from Cash-on-Cash Returns)
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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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calculates the cash-on-cash return by dividing the cash inflow on the investment in a given year by the cash outflow originally made.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.
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The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.