Why Cash on Cash Return Is a Bad Metrick?

Cash on cash return is simply the physical cash you have in hand after 12 months. It's also a great way to run a back of the napkin analysis. The calculation literally takes ten minutes or less and typically gets you within two to five % of the actual return on equity. Some investors argue th your tax situation doesn't impact the assets performance. However, the tax impact of investment decisions should absolutely be assessed.