10/31/2026
What does your apartment investment actually return on the cash you put in?
Cash-on-cash return compares annual pretax cash flow after operating expenses and debt payments with total cash invested. Count closing costs and initial improvements as well as your down payment, and budget reserves.
Illustration: $40,000 annual pretax cash flow ÷ $500,000 invested = 8%. This is not a projected return. Stress test lower collections and higher expenses. Cash-on-cash return does not capture appreciation, principal paydown or tax benefits.
JPMI Commercial | Multifamily & Hospitality
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