CoC

CoC is the abbreviated form of Cash-on-Cash Return, used interchangeably in underwriting discussions. It measures annual cash yield on the actual dollars you invested, not the total property value. CoC ignores principal paydown, tax benefits, and appreciation - it is purely a cash yield metric. While useful for quick comparisons, always look at IRR for a full-cycle return picture that includes equity at exit. For seller-financed deals with minimal down payment, CoC looks extraordinary; confirm the underlying NOI and DSCR make sense before anchoring on the metric.