Good Cash on Cash: What It Means and How to Achieve It in Real Estate

When people talk about a good cash on cash, the annual return on the actual cash you put into a rental property, not the total price. It's not about how much the property sells for—it's about how much cash you walk away with each year after paying all expenses. A cash on cash return, a simple metric used by real estate investors to measure profitability based on cash invested of 8% to 12% is often considered solid in most markets. But what does that actually mean for your wallet? If you put $50,000 down on a rental and net $5,000 in profit after mortgage, taxes, insurance, and repairs, you’ve got a 10% cash on cash return. That’s not magic—it’s math. And it’s the difference between a property that just sits there and one that actually pays you.

Most beginners focus on appreciation—"It’ll go up in value!"—but that’s a gamble. A rental property ROI, the overall return generated by a rental investment, including both cash flow and equity growth that relies only on future price jumps can leave you stuck if the market stalls. A real estate investment, a property purchased to generate income through rent or resale, not for personal use that delivers strong cash on cash returns keeps working even when prices flatline. You’re not waiting for someone else to pay more—you’re getting paid every month by your tenants. That’s why smart investors look for locations where rent covers the mortgage and leaves room for profit. Mulund, for example, has steady demand from professionals and students, making it easier to find tenants who pay on time and stay long-term. You don’t need a luxury villa to get good returns. Sometimes a well-located 2BHK with decent rent and low maintenance does the job better.

And here’s the truth most people miss: a passive income, earnings received regularly with little ongoing effort, such as rental payments stream from real estate doesn’t come from buying the fanciest place. It comes from buying the right one. That means checking the numbers before you sign. What’s the actual rent? What are the property taxes? How much will repairs cost? One bad roof or a month without a tenant can wipe out your profit. The best deals aren’t the ones with the lowest price—they’re the ones with the highest net cash flow after all costs. You don’t need to be rich to start. You just need to know what to look for. Below, you’ll find real examples of how people are making this work—from small apartments in Mumbai to larger properties overseas. These aren’t theory pieces. These are stories of people who ran the numbers, found the gaps, and started getting paid.