What's your preferred measurement of return?

[Edward Sittler]

IRR, CoCR, ROI, ROE, something else?

Obviously different metrics are more/less applicable to different strategies. Something I am considering right now is how to use return on equity (ROE) to determine the tipping point when it becomes more advantageous to sell than hold. If I'm getting an 8% ROE I'm gonna hold, but if it drops to 4% I gotta think that selling is the better decision at that point.

This also applies to the debate over appreciation vs. cash flow markets. The ROE is going to be way higher in cash flow markets, which will favor long-term holding, while the low ROE in appreciation markets favors value-add and flipping.