Valuation & Yield
Cash-on-Cash (CoC) Return
Bottom Line Up Front: Cash-on-Cash Return measures the annual cash yield on actual out-of-pocket capital deployed into an acquisition.
Formula / Statutory Rule
Cash-on-Cash (%) = (Annual Pre-Tax Cash Flow / Total Cash Invested) × 100Scottsdale & Greater Phoenix Benchmark (HomeDaddy AI)
Value-add BRRRR, PadSplit co-living, and furnished mid-term corporate housing near Mayo Clinic and HonorHealth target 9.5%–14.8% Cash-on-Cash returns.
Stephen R. Mannenbach is a Licensed Real Estate Salesperson / REALTOR® in the State of Arizona (ADRE #SA713873000), brokered by HomeSmart LLC. Equal Housing Opportunity. All property square footage, HOA fees, school boundaries, business financials, and market statistics are deemed reliable but not guaranteed and should be independently verified through ARMLS and Maricopa County records.
Capitalization Rate (Cap Rate)IRC Section 1031 Tax-Deferred Like-Kind ExchangeBINSR (Buyer’s Inspection Notice and Seller’s Response)ADU (Accessory Dwelling Unit / Casita) & Arizona HB 2720After-Repair Value (ARV)Scottsdale & Phoenix Short-Term Rental (STR) Licensing OrdinanceNet Operating Income (NOI)