Cash on cash return is one of the clearest ways to understand investor yield after financing. Dealarc helps you model that number while keeping debt coverage, reserves, and longer-term value creation in view.
Cash on cash return is about what your invested dollars produce after mortgage payments, not just property-level performance.
It is especially helpful when comparing financed rental deals with different down payments or debt structures.
A high cash on cash return can still hide weak reserves, low coverage, or a fragile exit profile.
The basic formula is annual pre-tax cash flow divided by total cash invested. That makes it intuitive for investors who want to know their actual yield on equity, especially in the first year of ownership.
It measures annual pre-tax cash flow divided by the total equity invested in the deal.
Because financing changes both your equity requirement and your annual debt payments, which directly affects investor yield.
No. A higher number may come with higher leverage, lower reserves, or weaker downside protection.