How to Find Your Return on Investment (ROI) in Real Estate
Posted by Jag Sidhu PREC* on
Return on Investment (ROI) is a critical metric for real estate investors. Understanding how to calculate and assess your ROI is essential for making informed investment decisions. In this article, we'll guide you through the process of finding your ROI in real estate.
1. ROI Calculation
ROI is a ratio that measures the profitability of an investment. To calculate your ROI in real estate, you can use the following formula:
ROI = (Net Profit / Total Investment) x 100
2. Understanding Net Profit
Net profit is the amount of money you make from your investment after deducting all expenses. In real estate, this includes rental income minus expenses such as property taxes, mortgage payments, insurance, maintenance, and property management…
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