Investment Performance Analysis (financed -> loan paydowns)

[Jerry Poon]

I have been financing all my properties, and analysis via Cash on Cash has been serving me quite well. With the market being the way it is right now, I've moved onto cash buys and paying down my loans for now.

Since the properties will all get an artificial bump in performance once the loan is extinguished, Cash on Cash doesn't seem the most appropriate for my situation.

What performance analysis metrics would you suggest to capture loan paydowns appropriately?

[Joe Villeneuve]

Originally posted by @Jerry Poon:

A. I agree. But it is a safe option nonetheless.

B. I have not held my properties through a downturn before. I am uncertain of how they will perform in such an event, so paying down debt is hedging my bets.

 A - How is it safer?  From what?

B - How is paying down your debt hedging your bets?  If there is a downturn, do you think the number of buyers goes up or down?  Do you think the number of renters go up or down?  If demand for rentals goes up, do you think rents go up or down?