You might be asking: If the cash-on-cash return is high enough, doesn’t the total return take care of itself? That’s a very good and misguided question. When you decide to purchase an investment property strictly because of CoC return, you impact that property’s ability to produce the other forms of return.
View the full article: PSA: Investors, DON’T Base Your Buying Decisions on Cash-on-Cash Returns Alone on The BiggerPockets Blog. This content is Copyright © 2017 BiggerPockets, Inc. All Rights Reserved.