Return in Dollars Quadrant™

Return on Investment Quadrant™

The Return on Investment Quadrant™ is the amount, in dollars, of each of the four primary components of returns in a real estate investment divided by the initial investment (also known as the total cost to close). The four primary components of return are: Appreciation Cash Flow Cash Flow from Depreciation™ Debt Paydown We typically display this graphically as: Or, with actual numbers like this: The Return On Investment 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 … Read more

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 In some cases, we will also include the return earned on reserves as well. This is especially true if we are calculating returns and including the drag from setting aside reserves to invest in real estate. This is a more correct methodology since you really need reserves to prudently make investments in rental properties. We typically display this graphically as: Or, with … Read more