Glossary · Valuation
Cash-on-Cash Return
Annual pre-tax cash flow divided by total cash invested — the levered yield on actual dollars committed.
Definition
Cash-on-cash return measures the annual pre-tax cash flow a property generates against the total cash the investor has personally committed (down payment + closing + rehab + reserves). Unlike cap rate, it accounts for leverage — making it the most direct measure of return on actual dollars at risk.
Formula
Cash-on-Cash = Annual Pre-Tax Cash Flow / Total Cash Invested
Worked example
An investor commits $120,000 in down payment + rehab and the property generates $14,400/yr in pre-tax cash flow after debt service. Cash-on-cash = 12.0%.
How DealIntel uses it
DealIntel reports cash-on-cash on every BRRRR and Buy-and-Hold scenario alongside IRR and total ROI — and stress-tests it against rate, vacancy, and rehab overrun shocks.
Related terms
- Capitalization Rate · Cap RateThe annual unlevered return of an income property, expressed as a percentage of its value.
- Debt-Service Coverage Ratio Loan · DSCRAn investment property loan qualified on the property's rental income rather than the borrower's W-2 income.
- Buy, Rehab, Rent, Refinance, Repeat · BRRRRA long-hold real estate strategy that recycles capital through a cash-out refinance after stabilization.