Return on Investment Quadrant™

Cash Flow Power Meter™

The Cash Flow Power Meter™ is a new way to evaluate rental property cash flow. It presents information we might otherwise see in a Return in Dollars Quadrant™, Return on Equity Quadrant™ or Return on Investment Quadrant™ in a new, simple and powerful way. Before I start explaining what the Cash Flow Power Meter™ is and how we use it, I want to say: if you invest in a real estate market that has positive cash flow, you should absolutely be buying properties with positive cash flow. The need for the Return in Dollars Quadrant™, Return on Equity Quadrant™ and … Read more

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