How to calculate ROI on Owner Finance

[Rivy S.]

I'm trying to figure out how to calculate the ROI/Coc on an owner finance. When calculating a CoC%, usually you just divide the profit by the capital investment. So if you invest $100k, and you are making $10k a year, that's a 10% CoC. BUT in that scenario, you've still got your capital intact. So after 15 years, you've made 150k, and if you sell the investment, you recover the original 100k.

With owner finance, at the end of the term, you've got none of your original capital left. So if you invest 100k, and are earning 10k/year, after 15 years you've earned 150k, but can recover NONE of your original investment( assuming a 15 year note). So your ROI has got to be different.

So how do you calculate the CoC for this scenario?