ROI on investment property question?

[Chris K.]

Hello!

I am having trouble wrapping my head around some roi calculations.

I have a property let’s say 300k purchase price.

I will out down 10% so 30k.

I calculate that after mortgage, expenses etc I have positive cash flow of 100$ monthly.

This leaves $1200 annually. Coc roi is 4% , 1200/30000, which is not good.

But my question is, there does the equity that is being built up get calculated into my roi. My cash on cash roi is low , but the principal on the property is getting paid down by my tenant, does this principal get calculated anywhere into my roi?

I’m seeing as even if I were to break even , I am still leveraging the mortgage to build up my equity which I then get when I sell ..?

What am I missing or making a mistake?

Thank you!