Real Estate Investor Magazine South Africa August 2015 | Page 22

INVESTMENT INTELLIGENCE

Cash Flow plus
Due Diligence
By Robert Kiyosaki

Robert Kiysaki has a two-step recipe that he
suggests that you can use when it comes to real
estate investing in the United States or even in
South Africa.
He says he has two major questions:
1. Does the property have cash flow?
2. If it does, have you done your due diligence?
Cash flow – How to Calculate cash-on-cash return
The most important financial ratio of a piece of real
estate is cash-on-cash return. This is calculated with the
following equation below. Although the calculations
are in do