Uncomplicating the Cash-on-Cash Return in Real Estate Investing

[@anthonyminniti17]

When negative leverge occurs, how can we say it is bad for us if the opportunity cost of us not paying all cash for the deal is high if we invest the money we would have spent in the deal at a higher rate?

[@tacticares]

Hey Anthony, I'm speaking from the standpoint of the returns on our cash investment being objectively worse using leverage than purchasing with all cash. However, you bring up an excellent point that there's an opportunity cost to funding in cash, and you'd be wise to consider where else those funds could be impactful!

[@anthonyminniti17]

Would a discounted cash flow model be the correct model to use to assess whether the returns were adequent enough to justify getting financing and not paying cash for any given investment@@tacticares