You ROI might be great, but with equity sitting in the house your ROE is not as great.

It’s the same as the ROI vs ROE comparison. 

Calculate your ROE (Return on Equity), and your answer will be clear as day.

I’m not sure I subscribe to ROE over all, as I would like to have at least some paid off properties one day (I’m sure lots of BP folks find that controversial).

do u have dates of localBP meet ups in con roe /woodlands area

I'd take a look at Return on Equity (ROE).

@Roe Mitley thanks for the post.

It's a crap return if you buy at $460k in 2020.I'm guessing the property has appreciated to the point that the sellers are now sitting on a pretty low ROE, and are trying to cash out at the expense of unsuspecting buyer, so that they can deploy their capital more profitably.Apples and oranges, I'm afraid.

The problem there is that you'll be getting a horrible Return on Equity (ROE).That leaves the question of how do you use your equity to help finance your REI goals?

@Andrew McCotterAgree with Joe but I’ll state it in terms of ROE because I look at number *and* percentages ;-)Take the formula for ROE:Return on Equity = Net Cash Flow/Total Equity InvestedFinancing will reduce your net cash flow by the amount of debt service which decreases ROE.