Bought with cash, refi 1 month later, COC Return number is really high

Tips & Tricks
1

Hello! I’m assuming I just categorized something wrong, but my COC % number is really, really high. And as much as I wish that were true, my bank account says otherwise :slight_smile:

Here’s my situation:
I bought a property for $60,800 cash in January, then closed on a $45k mortgage in February. I updated Stessa, including the $45k proceeds as Mortgage Proceeds. It doesn’t show up in my cash flow, but it DOES show up in my COC number, making it show a whopping 3204.7% return for Feb. I’m assuming it’s counting the mortgage proceeds as returns against the $15,800-ish cash I still have in it since the proceeds aren’t wired up to the mortgage info I entered on the property, thereby double-counting the $45k. I tried categorizing it as Money In - Mortgage Principal, but that doesn’t solve the COC issue either.

How should I categorize the mortgage proceeds correctly to not double count the $45k from the loan?

2

So you have a substantial COC. Enjoy it.

3

@jason Take another look at your cash-on-cash metric and Net Cash Flow report. We’ve made some changes to better reflect purchase, sale, and refinance/mortgage activity. Some (or all) of what you reported back in March should now be cleaned up.