What Is Cash-on-Cash Return?
Cash-on-Cash Return (CoC) is the annual cash flow from a property divided by the total cash equity invested. It measures the pure cash yield an investor receives in year one — distinct from cap rate (unlevered yield on full value) and IRR (full hold time-weighted return).
Typical Florida CRE Cash-on-Cash Targets
- Core stabilized multifamily / NNN: 4–6%
- Core-plus office / retail: 5–7%
- Value-add multifamily / industrial: 6–9%
- Opportunistic / distressed: 0–4% in year 1 (back-loaded returns)
- Hospitality (stabilized): 8–12%
Cash-on-Cash vs. Other Return Metrics
- vs. Cap Rate: CoC uses leverage, cap rate is unlevered.
- vs. IRR: CoC is one year, IRR is full hold time-weighted.
- vs. Equity Multiple: CoC is annual, equity multiple is total return on capital.
See our full glossary entry for detail, and pair this with the IRR + Equity Multiple calculator for full-hold return analysis.