19 yr old: What is wrong with my ROI calculations 55-100% ROI/yr?

[Devon Rollison]

First off for some reference before you get into the Example: As you know there is at least 5 different possible "sources" of income when buying any kind of Apartment, multi family or single family real estate deal. 3 of them are reoccurring and passive profit each year #1 Cash flow, #2 Principal paydown ,#3 Appreciation. The other 2 are not recurring  and not passive  #4 Bought Below Market Value , #5 Other Value Adds (Not Renovations). Now this example is just laying out what each one of these "sources" of income have the possibility to return I.e Cash flow it is a very known fact that you can get 7%-10% ROI I.e 7-10 CAPs. Now, what are the known ROI's for the other 4? This is What I am trying to find out for certain. What do you think about my possible ROIs because to my knowledge they are all very possible and some even somewhat conservative (#2 is 100% undeniably true, #3 is also undeniably true when talking long term, and so are the other 2 honestly as far as my knowledge goes).

Ex: Purchase Price: 75-100 unit @$4m-$5m PP, $1m down

ACCURATE CONSERVATIVE RETURN NUMBERS FOR APARTMENTS (Can apply to Single and Multi Family as well):

Income #1)Cash flow:@7%-10% ROI =$5.8k-$8.3k/month =$70k-$100k/year

Income #2)Principal Pay Down: @33% minimum of $3m-$4m mortgage ($15k-$20k/month mortgage) =$60k-$80k/year

Income #3)Appreciation: @2% =$80k, @3% =$120k, @4% =$160k

Income #4)Bought Below Market Value: @5% =$200k, @7.5% =$300k, @10% =$400k

Income #5)Other Value Adds (Not Renovations): @2% =$80k, @3.5% =$140k, @4.5% =$180k, 7% =$280k

Yearly Reoccurring ROI On $1m:

1)Cash flow =7%-10% ROI

2)Principal Pay Down = 6%-8% ROI

3)Appreciation =8%-16% ROI

Total =21%-33% Yearly Recurring ROI ($210-$330k On The $1m Down)

One Time Only ROI:

4)Bought Below market Value =20%-40% ROI (@5%-10% Below)

Total =45%-71% ROI ($450k-$710k On the $1m Down)

5)Other Value Adds =10%-28% ROI (@2.5%-7% Value Add)

Total =55%-100% ROI ($550k-$1m On the $1m Down)

As well as basically no taxes paid on all of it... (Property tax write offs alone =$70k/year, and cash flow is the only taxed income when doing everything properly so the $6.7k-$8.3k/month Taxable Cash flow = basically 0 taxes paid with just ONE right off/tax savings method).