Is 8% cash on cash good for rental property?

Yes, 8% cash on cash is a good return for rental property. It significantly outperforms savings accounts and bonds, and is competitive with stock market returns — plus you get additional returns from appreciation, loan paydown, and tax benefits.

What is infinite cash on cash return?

Infinite CoC occurs when you have zero dollars of your own capital remaining in a deal but still receive cash flow. This typically happens in BRRRR investing when the refinance returns all your invested capital. Any positive cash flow divided by zero investment equals infinity.

Should I prioritize CoC or appreciation?

It depends on your stage. If you need income now (replacing a job, covering expenses), prioritize CoC. If you are building long-term wealth and have other income, a mix of CoC and appreciation is ideal. Most investors eventually want both.

What is a Good Cash on Cash Return?

Cash on cash benchmarks by strategy, market type, and investor experience level.

Updated March 2026|By becvio Research

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Cash on Cash Benchmarks

Above 12% is excellent — your invested cash is earning an outstanding return. Most BRRRR deals that recover all capital achieve infinite CoC. 8-12% is great and the sweet spot for most buy-and-hold investors. Your money is working significantly harder than stock market averages. 5-8% is acceptable, especially in appreciating markets where total return (cash flow plus appreciation) is strong. Below 5% is low — a standard index fund may outperform without the hassle of property management.

CoC by Investment Strategy

Buy and hold in cash flow markets typically achieves 8-15% CoC. BRRRR deals that recover most capital can reach 20-50% or even infinite returns. House hacking often shows 50%+ CoC because the down payment is so small on owner-occupied loans. Flips are measured differently (ROI not CoC) but successful flips generate 15-30% returns over 3-6 months. Short-term rentals in good markets can achieve 12-20% CoC.

CoC by Market

Cash flow markets like Toledo, Cleveland, Memphis, and Detroit often deliver 10-15% CoC because property prices are low relative to rent. Secondary markets like Indianapolis, Kansas City, and Columbus typically deliver 7-10% CoC. High-cost markets like Austin, Raleigh, and Nashville may only deliver 3-6% CoC but compensate with appreciation. The key is matching your CoC expectations to the market type you are investing in.

CoC vs Total Return

Cash on cash only measures cash flow — the money in your pocket each month. Total return includes appreciation, principal paydown (tenants paying your mortgage), and tax benefits (depreciation). A property with 5% CoC in an appreciating market might have 15-20% total return. A property with 12% CoC in a flat market might have 14-16% total return. Both are good investments for different reasons.

How to Improve CoC

The fastest improvements come from: raising rent to market rate, reducing vacancy with better tenant screening and property presentation, cutting expenses (shop insurance, contest taxes, negotiate management fees), refinancing to a lower rate, and in BRRRR deals, pulling cash out to reduce your invested capital denominator. Every dollar you pull out via refinance improves your CoC on the remaining capital.