Return on Equity Quadrant™

The Return on Equity Quadrant™ is the amount, in dollars, of each of the four primary returns in a real estate investment divided by the current equity in the property. The four primary areas of return are: Appreciation Cash Flow Cash Flow from Depreciation Debt Paydown We typically display this graphically as: Or, with some numbers filled in like this: The Return on Equity Quadrant™ is automatically calculated for you at the bottom of the page when you’re editing your  Property assumptions. Just scroll to the bottom. Check it out for yourself by editting one from your Properties page. If … Continue reading Return on Equity Quadrant™