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Cash-on-Cash Return VS CAP Rate

Cash-on-Cash Return VS CAP Rate

What real estate metrics to use and how and when to use them can become challenging. I will go into detail on two of arguably the most important metrics: Capitalization (CAP) Rate and Cash-on-Cash Return. Although both talk to the performance of the asset, there are major differences. Both should be considered when purchasing a property but in different ways.

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