Cash-on-cash return first-year cash flow ÷ the cash you invested. What your real money earns in spendable income; can be negative. Where it's taught Real-Estate Investing: Cap Rate, Cash Flow, and the Magic (and Menace) of Leverage Try it with a calculator Real Estate Calculator Related terms AppreciationCap rateLeverageNOI (Net Operating Income)Positive / negative leveragePrincipal paydown