Return on investment, or ROI, is the single most important metric to consider when it comes to purchasing rental real estate. ROI is used to evaluate the performance of an investment. This metric determines how profitable your investment will be.
If you’re assessing a real estate investment, ROI is critical. It is the entire reason for investing in real estate! You need to know how to use a simple and conservative formula in order to thoroughly analyze the return on a rental property.
In this video, I’ll show you a simple and straightforward way to calculate ROI. You’ll learn about the cash-on-cash formula, and the importance of being conservative in your estimate. We’ll talk about cash flow, expenses, and more!
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