Question
How do I find the ROI on an investment property?
I just acquired my first real estate investment property, and I am wondering if someone could provide me with the formula to calculate my cash-on-cash return (ROI)? Send me an email if you need more information, or if you need me to provide you with the numbers.
4 months ago - 2 answers
Best Answer
Chosen by Asker
Cash on cash is not exactly the same as ROI. (return on investment) To calculate ROI, add non-cash income such as the increase in your equity from appreciation and principal payments made on your loan. One is also advised to subtract for reserve accounts for delinquencies and for major maintenance and repairs.
Source(s)
Foothill College accounting classes 1975-1976 and continuing education.
by DRE 00881401
4 months ago
Asker's Rating: 
Other Answers
revenue minus expenses = ROI and roi divided by value of property is cap rate if you put in 25k [down payment] and are getting back 5 k a year, your cash on cash is 20%. [$5 divided by 25k down = 20%] best answer /score please
by kemperk- 4 months ago