Rental Property Investor · Reno, NV · Member since 2013 · 52 posts · 10 votes
I know both ROI and per door cash flow are important, but is there one that trumps the other? I am guessing this is going to depend on your situation and goals, but interested to hear some opinions on the matter.
@Dusty Cady you are right in that it is situational. I want to change my life today, which means I focus on cash on cash returns. A per door number a good rule of thumb, but not a real target. Every deal is different and you will have different amounts of cash in each property, plus you buy each property for slightly different reasons. ROI is a more holistic look where you will be factoring in appreciation and exit. I like cash on cash because it is real right now today and affects me immediately, plus I don't plan to exit for long term. I consider the long game for every purchase, but weight it for what is a known quantity.