What's so great about ROI

[John Hanson]

Financially, how do you evaluate your potential real estate investments? Is "Return on Investment" the best method to use? I'd like to know how each of you approaches your investments.

For instance, I read of one investor who values his time at $500/hour and requires a specific ROI. I know someone else who is a full-time investor / property manager who values his time at $50 per hour (he does lot's of maintenance / roof repairs, etc) and has a different ROI.

How do *YOU* evaulate potential investments and choose one over another. And why use ROI over another method? Thanks for your thoughts!