When seeking a 10% cash-on-cash return with current market conditions, what is the overall rate of return using the band of investment technique?

To determine the overall rate of return using the band of investment technique while aiming for a specific cash-on-cash return, it's essential to recognize that the cash-on-cash return is typically a component of a larger calculation that includes both equity and debt components of the investment.

The band of investment technique essentially weighs the costs of both equity (the cash portion of the investment) and debt (the financing portion) to derive an overall capitalization rate or overall rate of return for the property based on its financing structure. In this case, a 10% cash-on-cash return is being sought, which suggests that the investor expects to earn 10% on only the equity portion of the investment.

However, without knowing the proportion of financing versus equity used in the investment and corresponding rates for each, it's impossible to quantitatively derive a definitive overall rate of return. The overall rate can vary widely based on market conditions, interest rates on debt, and how much leverage (financed portion) is applied.

Thus, without additional information about those aspects, it is not feasible to calculate or assert a specific overall rate of return. Therefore, using the band of investment technique in this context leads to the conclusion that the overall rate of return is unknown.