Cash-on-cash return depends heavily on financing and market
Cash-on-cash return -- annual net cash flow divided by total cash invested -- varies significantly by market, financing structure, and property type, which makes any single blanket percentage misleading as a promise rather than useful as a benchmark.
A realistic underwriting model shows a range across a strong, average, and weak season for the specific property and market being considered, not a single confident number.
Total return includes appreciation and the tax benefit, not just cash flow
Cash flow is only one component of total return -- property appreciation and the value of accelerated depreciation, if the investor qualifies to use it against other income, both contribute to the full picture over a multi-year hold.
New investors should be skeptical of any projection that shows only the most flattering single number rather than this fuller, range-based picture.
BNB Accelerator's acquisitions team, led by Nick Korom, screens over 1,000 short-term rental listings a week and hand-delivers the roughly 2% that clear underwriting. Book a free consultation to see what a done-for-you short-term rental acquisition looks like for your situation.