Could you please explain what a good cash on cash return is in the context of real estate investments, and what factors should be considered when determining whether a particular investment offers a favorable cash on cash return? Additionally, how does this metric compare to other investment evaluation metrics, such as the cap rate or internal rate of return? Is there a general benchmark for what constitutes a good cash on cash return, or does it vary depending on the specific investment and market conditions?
The concept of a good cash-on-cash return is subjective and varies greatly among investors. This is due to various factors such as individual risk tolerance, market conditions, and expectations for future value appreciation.
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GeishaEleganceWed Sep 18 2024
For some real estate investors, a safe and predictable CoC return of 7% to 10% is considered satisfactory. This range often aligns with their investment goals and risk profile.
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CoinMasterWed Sep 18 2024
However, other investors may demand a higher CoC return to justify their investment. These investors may only consider properties that offer a cash-on-cash return of at least 15% or more.
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charlotte_bailey_doctorWed Sep 18 2024
The decision on what constitutes a good CoC return ultimately depends on the investor's unique circumstances and financial objectives.
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RiccardoWed Sep 18 2024
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