How to compare returns + make critical investment choices

[Phil Carpenter]

Team - I could use your help! I'm evaluating a number of different real-estate investment decisions and am trying to figure out what is the best indicator of returns that I should use to make "apples to apples" comparisons and prioritize my investment choices based on those returns. 

I'm currently doing some residential real estate work with a friend (buy/demo old homes, build new ones, sell them). I'm also looking at:

1)  A fund that buys residential mortgages

2) A fund that buys apartment buildings

3) A fund that buys mobile home parks

4) A condo in Mexico (for rental, not personal use)

5) Buying my own mobile home park

So do I use ROI? But then how do I account for the depreciation benefit that I would get if I purchased a mobile home park (this latter point is confusing to me, and the key driver of this post)? Do I use a measure that accounts for taxes, such as Cash Flow After Taxes? Should I look at CFAT/purchase price as a return measure of some sort?

Thanks in advance for your advice!

[Bill F.]

@Phil Carpenter

Short answer: You want to use a calculation that takes into account the time value of money, like IIR/MIRR or Capital Accumulation Comparison. 

Longerish answer: The question you're seeking to answer brings you into the realm of requiring some more advanced modeling to project cash flow, appreciation, tax benefits, and amortization. You have laid out drastically different investment vehicles with different capital requirements, time horizons, risk (both systemic and asymmetric), returns, tax treatments, time requirements, debt availability... ect

It looks like you have a bit of shiny object syndrome.  Come up with one or two filters that match up with your goals, which can narrow your options to 2-3 and then model those out extensively.