cash flow: The Cash-on-Cash Conundrum — a Postscript - 09/16/14 11:35 AM
A strong CoC unarguably provides a good sign that your investment is off on the right foot. Is that the end of the story – or should it be? I think this narrow focus can cause an investor to miss some vital issues.
Read my discussion of the issues surrounding the cash-on-cash metric in real estate investing on our blog at realdata.com   --- Frank Gallinelli

 
 
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cash flow: Cash Flow Analysis -- Annual or Monthly? - 02/10/09 08:25 AM
A reader of one of my books wrote to me recently with a very worthwhile question. When we build a pro-forma analysis of future cash flows from a real estate investment, why do we annualize those cash flows instead dealing with them on a monthly basis? After all, rent is typically collected and bills paid monthly.
The quick and facile answer, of course, is because we've always done it that way. Back in the day, we didn't have powerful personal computers and sophisticated real estate software, so one might argue that this annual approach is just a holdover from a … (1 comments)