How to re-calculate properties

[Zac Boelkow]

So I understand how to evaluate investment properties at the time of purchase. What I am confused about is how to evaluate the property down the road after you have purchased it. For example say you buy a property for 140,000 all in. Say after expenses you net 10% every year ($14,000). Now lets say its three years down the road ($42,000 in net returns). Also because you bought the property below market value and it has appreciated (either way) and it is now sell-able at $175,000. So if I paid all cash for the property would I do the calculation like this:

$140,000-$42,000 = $98,000 and I am still earning $14,000 so do I run my new numbers at $14,000 / $98,000 = 14.29% ? or do I use the actual sell-able value because that is the actual dollar value? so then the calculation would be $14,000 / $175,000 = 8% ??

This calculation really does not matter if the property is financed or bought with cash. The same scenario happens. Cash comes in and you ultimately have less cash in. Value goes up, etc. etc.. etc..

I am thinking the correct way to calculate is the actual value of the property at the time? It kinda matters the amount you have invested but it feels like the the actual sell-able value should be the basis of your calculations?