What do you include in your ROI calculations?

[Ryan Stahr]

I'm still running numbers on properties I can access via the MLS and a friend who is a realtor, just for practice. I then had my roommate look at my spreadsheets because he is a numbers guy and likes to play devil's advocate.

My question is: when you are calculating the cash-on-cash returns calculating your yearly ROI, what numbers do you use? for example, do you take every minute real estate closing cost and fee and account for them in your yearly profit calculations? Because after year 1, those expenses will not recur and your profit margin will go up. it's obviously good to know so you have all the capital prepared for closing and I want to be prepared to spend more than I expect.

but what exactly do you include in your assessments of ROI and yearly profits?