/// CAP RATE IGNORES YOUR LOAN. THIS DOESN'T
Cash-oncash.
Cash-on-cash is what your invested dollars actually earn after debt service. Full amortization math, no shortcuts.
Loan amount
$1,300,000
Monthly P&I
$8,004
Annual cash flow
$3,948
Cash-on-Cash
0.53%
Estimate for underwriting, not investment or tax advice. Check every figure against the rent roll, the loan terms you are actually quoted, and your own accountant.