The Return in Dollars Quadrant™ is the amount, in dollars, of each of the four primary returns in a real estate investment.
The four primary areas of return are:
- Cash Flow
- Cash Flow from Depreciation
- Debt Paydown
We typically display this graphically as:
Or, with actual return numbers as:
Check it out for yourself by editting one from your Properties page.
If we divide the amount of the return in dollars by the initial investment for each quadrant, we get the Return on Investment Quadrant™.
If we divide the amount of the return in dollars by the equity in the property for each quadrant, we get the Return on Equity Quadrant™.
While the Return in Dollars Quadrant™ is not explicitly shown on The World's Greatest Real Estate Deal Analysis Spreadsheet™ to avoid clutter, the numbers for each are present in the spreadsheet since they used to calculate and then display the Return on Investment Quadrant™ and Return on Equity Quadrant™ as well as the charts for each.