Real Estate Investment Financing Cash on cash return certainly is the rate of return in real estate transactions that are dependant upon calculation of the yearly income against the total investment in dollars. Because of this the cash on cash return is a device that can be used to look at the profitability of real estate investments. It’s worth bringing up that the cash on cash return is always a percentage since it measures income next to investments. Additionally, the investment forecasts doesn’t only refer to the downpayment that the individual makes prior to the investment in the rental property but rather comprises every one of the costs that the investor expects to put into the project. Previously, many people have used cash on cash return to look at the profitability of the real estate investment. However, this has since changed because doing so has been discovered that cash on cash returns have a range of disadvantages and so utilizing them can lead to erroneous o ...