{"id":148483,"date":"2023-12-26T16:00:27","date_gmt":"2023-12-26T16:00:27","guid":{"rendered":"https:\/\/namso-gen.co\/blog\/what-is-a-good-cash-on-cash-return-rental-property\/"},"modified":"2023-12-26T16:00:27","modified_gmt":"2023-12-26T16:00:27","slug":"what-is-a-good-cash-on-cash-return-rental-property","status":"publish","type":"post","link":"https:\/\/namso-gen.co\/blog\/what-is-a-good-cash-on-cash-return-rental-property\/","title":{"rendered":"What is a good cash on cash return rental property?"},"content":{"rendered":"

When it comes to investing in rental properties, one key metric to consider is the cash on cash return. The cash on cash return is a ratio that measures the annual pre-tax cash flow generated by an investment property relative to the amount of cash invested in the property. In simple terms, it tells you how much cash you are making on the cash you have invested.<\/p>\n

A good cash on cash return for a rental property is generally considered to be around 8-12%. This means that for every dollar you invest in the property, you are generating 8-12 cents of cash flow annually.<\/strong> <\/p>\n

Having a good cash on cash return is important because it indicates that your investment is generating a healthy return relative to the amount of money you have put into it. A cash on cash return of 8-12% is typically seen as a solid benchmark for a rental property investment, but ultimately what is considered “good” will depend on your individual financial goals and risk tolerance.<\/p>\n

Here are 12 related FAQs about cash on cash return for rental properties:<\/p>\n

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