You own this little business called a rental property.

You run this business.

You collect rent. You pay all these expenses. You have all this. You have money coming into your bank account. You have money going out. Now all we're trying to figure out is what's left over other than having to pay our income taxes. Remember, that's something you do at the end of the year, but that's a different story. So you have whatever's left over cash flow. you're then trying to figure out what's the ratio of that cash flow to what we

invest it up front.

Welcome to the real estate and financial independence podcast.

My name is Chad Carson.

You can call me coach.

And this is a show all about investing in real estate, achieving financial independence, and doing more of what

matters. I'd like to welcome you to the show. Thank you so much for listening, as always.

The title of today's episode is How to Calculate Cash on Cash Return. And I'm also going to provide some examples. Now, those of you who

listen to this podcast much or read my articles, you know that I talk a lot about running the numbers or

doing a deal analysis. And so as you'll see in this episode, there's going to be, we're going to go

in depth on this one particular formula which is cash on cash

return it's really important and it's something I think you should have as kind of a tool in your

toolbox of analysis I want to mention up front though that if you're listening to this in the

first day or two that it comes out I'm actually releasing a new calling a mini course in

this very focused topic called rental property analysis.

And so in that course, I'm going to also cover cash on cash return, but it's more of a

course about the spreadsheet that I use to analyze rental properties and going through the

basics, the most important formulas, cash on cash return, but also other ones like cap rate

and internal rate of return and several other

key formulas and teaching you how you use those and then giving you my spreadsheet and letting

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