The book on rental property investing question?

[Kyle Scofield]

Okay BP, I've got a question that's just been confusing me a bit lately. In this book, Brandon gives an example of how to calculate total return.. The equation looks like this: Total return = (total profit / total invested capital) / time (in years) His example: ($41,399.08 / $36,950) / 5 years Total return = 22.4% The thing that is confusing me is the profit. So he spent $36k over 5 years to make $41k? Isn't that basically only a $5,000 profit? He made 41k but spent 36k to get there? What am I missing here? Thanks in advance to anyone that replies! - Kyle