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Updated almost 9 years ago on . Most recent reply

Rusty Hitt's profile image
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Rusty Hitt
  • from Palatine, Illinois
  • Member since Jan 26, 2016
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Rusty Hitt
  • from Palatine, Illinois
  • Member since Jan 26, 2016
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Rusty Hitt
  • Palatine, IL
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Buying & Selling Real Estate

ROI calculations

Rusty Hitt
  • Palatine, IL
Posted

I have been looking for the answer to this question on the board and can't pin it down. It appears (to my highly untrained eye) that equity gains do not appear in CoC ROI. Is this the case? If not, why?

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Brent Coombs
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  • from Cleveland, Ohio
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Brent Coombs
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Brent Coombs
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  • Cleveland, OH
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Brent Coombs
  • Investor
  • Cleveland, OH
Replied

@Rusty Hitt, CoC by definition ONLY includes the CASH that you can spend, as a percentage of the amount of CASH you invested, after a given year.

Future equity, depreciation and other TAX terminologies have no part to play in determining CoC - and arguably, should not play a major role in determining whether a possible investment would be wise or not!

I'll leave it to others to provide more technical answers. Cheers...

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