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:
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.