Is Profit Per Hour Invested The Best Return Metric For RE Investing?

[Bryan Hancock]

I am reading a book by a well-known author right now and he has some disparaging remarks for yield measurements for real estate investing. I tend to agree with him given that most real estate activities carry a huge time element that is completely ignored from most yield analysis. I see two ways to fix this:

1. Value your investments using profit per hour invested
2. Account for your time in your investment models including time spent on overhead and such...a tall order!

Item 2 also begs the question about what dollar amount to put on your time. With fluid projects you could get this using item 1, but that would just mean that item 1 is a better idea anyway!

Is profit per hour a better metric for real estate investments than IRR, MIRR, ROI, COC, XIRR, NPV, or anything that the finance textbooks use?