Property Analysis - How to Allocate Refinance Income

[Brian Quist]

After listening to the podcast and reading some articles I've started creating much better spreadsheets tracking my 3 rental properties. Specifically I'm trying to analyze ROI (or cost of capital) vs ROE. Two of my properties have gained a lot of equity and I'm debating selling one in order to re-allocate that money into better deals.

Here's my question; I refinanced one of my properties in 2017 and I'm wondering where on my spreadsheet I should allocated the money I pulled out?  Should I deduct it from my original capital costs.  This makes sense to me, but suddenly means my ROI for that property in the years after shoot way up since the capital investment is now around $10.  To me the analysis seems off now.  The other option is just to consider it rental income for that year and have 1 year of off the charts cash flow.

Appreciate any input. this is my first post on the forums.

Brian