Return in Dollars Quadrant™

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:

  • Appreciation
  • Cash Flow
  • Cash Flow from Depreciation
  • Debt Paydown

We typically display this graphically as:

Return in Dollars Quadrant™
Return in Dollars Quadrant™

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.

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