the total benefit of owning a property

[Harry Wilson]

I've been analyzing lots of deals lately and the main thing I'm focused on is cash flow, for example I find a deal that is cash on cash of 13% and say to myself that its better than the stock market etc.

however when you add the debt pay down into the equation, the net benefit is increased dramatically, 

here is a calculation I did, no crazy expectations, everything increasing at 2.5% annually.

after a year I cashflow $2,850 however I've also gained 2,124 in equity, totaling 4,974. 

so in reality my actual return is much greater 12.20% cash on cash - 

(2124 equity after a year and as a percentage of the 22250 paid = 9.54%

9.54% + 12.20% = 21.7% 

so really I am making a 20% return on my investment.

why doesn't everyone do this calculation? am I missing something?