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Updated over 10 years ago on . Most recent reply

I don't understand $ per door instead of % return
I often hear investors refer to netting X dollars per door. That makes no sense to me. $200 per door per month might be great if you have 10K invested, but terrible if you have $100K invested. Why does $ per door have any relevance at all?
Most Popular Reply

It matters because just as in your example $200/door for a 100K investment isn't good, neither is a 12% return on $5,000 which is only $50/mo. That IMO is not worth the necessary work required of managing a rental...or PM whichever the case.
They are two separate metrics that paint a different perspective on the same picture and then you can make a better decision.