Cash-on-Cash Return
Annual pre-tax cash flow divided by total cash invested (down payment + closing costs + rehab). The most common return metric for buy-and-hold rental investors.
Why it matters on a DSCR loan
Because cash-on-cash is driven by how much cash you leave in the deal, your financing structure moves this number more than almost anything else — a higher LTV or an interest-only period can materially lift the return on the same property. That's why investors often compare DSCR loan structures side by side before choosing one. Just don't chase cash-on-cash by minimizing your down payment past the point where the property still clears the lender's DSCR requirement.
Related terms
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DSCR Calculator Get a QuoteReviewed by Arin Baghermian, Broker Owner — NMLS #1220456 · Last reviewed July 2, 2026 · DSCR Capital Partners is a brand of UTM Financial, LLC (NMLS #2591548).