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Updated over 6 years ago on . Most recent reply
ROI doesn’t include equity ?
Hey everyone,
I was working on my spreadsheet and I was looking at ROI, and I wanted to understand it fully. So I understand that ROI is your profit (income-mortgage-expenses) divides by total initial investment (maybe down payment+closing costs).
So let’s say I’m renting it out and building equity, how how does equity come into play. Once the house is paid off does that mean I get a 108% ROI (if my original ROI is 8%?)
Thanks in advance!
Peter