Too many investors calculate cash-on-cash (CoC) once and call it a day. That’s how deals get misunderstood. You should always run both: 🔹 Current Cash-on-Cash This shows what the property is doing right now. Formula: Annual Cash Flow ÷ Total Cash Invested Use: • Current rents • Current expenses • Current debt terms This answers: “What am I getting paid today?” 🔹 Pro Forma Cash-on-Cash This shows what the property can do after execution. Use: • Market rents (not wishful rents) • Stabilized expenses • Renovation + refi assumptions This answers: “What does this become if the plan works?” ⚠️ Pro Tip: If the current CoC is negative or razor thin, your pro forma better be realistic — not optimistic. Cash-on-cash exposes weak assumptions fast. 💡 Smart investors buy on current performance and improve toward the pro forma, not the other way around. 👉 Want to get sharper at this? Join the ProSphere Skool community where we break these numbers down step-by-step with real deals, not theory. www.skool.com/prosphere-1303 ☕📈 Learn it. Underwrite it. Execute it.