Property Management

When calculating the 'cash-on-cash return' for a Wyoming investment property, you divide:

ANOI by the total property value
BAnnual pre-tax cash flow by the total cash invested (down payment + closing costs)✓ Correct
CGross rent by the purchase price
DNet income by the loan amount

Explanation

Cash-on-Cash Return = Annual Pre-Tax Cash Flow ÷ Total Cash Invested. This measures the return on the actual cash invested (not the total property value), making it useful for comparing leveraged investment returns. It differs from the cap rate, which uses the total property value.

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