Understanding Cash on Cash Return - MFI Series1, #130

Cash on Cash return is sort of like the dividend yield of income investing. Just like in the world of stocks, you can do things to improve the yield of your rental home. It is vital to understand cash on cash return; however, it is also essential to realize that you can improve your number. The more you know about increasing value, leverage, and house hacking, the better your returns. It is always good to start with the basic cash on cash return for any property.
Then, you can add value or find creative financing options-to lower your cash position. Like all investments, the more you understand, the better results you can achieve. There are no risky investments, only risky investors.