RV Park Cash-on-Cash Return
Cash-on-cash return is the metric that tells you how hard your actual invested dollars are working each year. This guide covers the formula, real benchmarks, and how to push your CoC higher.
The Cash-on-Cash Formula
Cash-on-cash isolates your return on the actual cash you put into the deal — unlike cap rate, it accounts for financing.
CoC = Annual Pre-Tax Cash Flow ÷ Total Cash Invested
Example: Cash Flow
$300K NOI − $210K debt service
= $90,000 cash flow
Cash Invested: $600K
$90,000 ÷ $600,000
= 15% CoC return
Cash-on-Cash Benchmarks
Target CoC ranges vary with risk and leverage. Here is what investors typically underwrite for RV parks.
Stabilized / Low Risk
8-12%
Class A/B parks, conservative leverage
Market Average
12-18%
Solid operations with standard financing
Value-Add
18-25%
Operational upside captured post-close
Highly Levered / Aggressive
25%+
High leverage, strong NOI growth
4 Ways to Boost Cash-on-Cash
The best operators improve CoC on both sides of the equation — more cash flow, less cash tied up.
Grow NOI
Every dollar of added net operating income flows straight into your annual pre-tax cash flow.
Optimize Leverage
More leverage reduces cash invested and amplifies CoC — as long as the deal still cash flows safely.
Cut Operating Expenses
Automation and submetering lower expenses, lifting both NOI and your cash-on-cash yield.
Refinance to Pull Equity
A cash-out refinance after stabilization can recover invested capital, sending CoC toward infinite returns.
CoC vs. Cap Rate
These two metrics answer different questions. Use them together when underwriting a deal.
- Cap rate measures the property's unleveraged yield
- Cash-on-cash measures the return on your actual cash after financing
- Leverage can push CoC well above the cap rate when the deal cash flows
- Negative leverage (rate above cap rate) drags CoC below the cap rate
Track It in Real Time
Cash-on-cash return is only as accurate as your cash flow data. Camp Operator tracks revenue, expenses, and occupancy live — so you always know your true annual cash flow and can spot CoC drift before it costs you.
Open the ROI CalculatorSee Camp Operator in Action
Watch how operators track cash flow in real time to protect and grow their cash-on-cash returns.
Maximize Your Cash-on-Cash Return
Start your free trial of Camp Operator. Grow NOI, control expenses, and track your true cash flow to push your CoC higher.