Starting Out
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by
1031 Exchanges
presented by
Real Estate Classifieds
Reviews & Feedback
Updated over 11 years ago,
Return on investment question
I am a little confused about calculating return on investment. Is debt paydown counted towards return on investment? For example, lets say I buy a house for $10,000 down and make $1,000 after expenses and mortgage payments. Lets say the debt paydown on the loan adds up to another $1,000 for the year. Would the return on investment only be the $1,000 profit, $1,000/$10,000, or, would the return on investment be the $1,000 profit plus the $1,000 debt paydown, $2,000/$10,000? Thanks for the help....