Value of Gains in Net Worth

[Jeff M.]

This is my first posted question!  I've been a member for a couple weeks and am loving this place.  But I am confused.  I just listened to the Podcast with Jay Papazan (Millionaire Real Estate Investor).  He spoke about the value of Net Worth.  Unless I am missing something, none of the standard investment evaluation tools we use care much about Net Worth.  For example, Cash on Cash does not care what goes to principle and Cap Rate does not care about financing at all.  Do any of our standard measures consider what goes to principle?  It seems to me that if I am putting $300 or $1000 per month towards principle, and my tenant is paying it, that it counts for something, right?  So where do we count it?  THANKS!