(https://www.cnbc.com/amp/2021/04/13/when-is-the-housing-market-going-to-crash-consumers-ask.html) I definitely think the return on equity (ROE) is one of the most important metrics for growth. $800/mo is great and you are making 4.8% on that equity.

While risk is much harder to assess quantitatively, return can be very easily measured in several ways, hence the focus on CoC, yield, ROI, ROE, IRR, Equity multiple, etc.

I suppose the ROE is higher if I put a rental property on the lots but given the high building costs, the costs to drill water well/clearing/septic and high taxes on the lots, i would have considerable costs to make that happen which would mean years longer to make that back.

If you have all the cash flow you need to support your lifestyle then it doesn't matter nearly as much what you put in dow payments or what your ROI/ROE is.

While this won't really answer your specific question about cashflow, you might consider this: that over time (5 years, 10 years) the important factor for an investor is not so much the ROI (return on the initial investment) but ROE (the return on your equity).

However, if you're looking for a metric to analyze I would look at "Return on equity" (ROE) for this property to show what type of return you're getting on your equity (market value of home - mortgage balance).

@David Roe Nobody can answer these questions or provide much in the way of guidance without seeing the precise contract language addressing financing, title defects, deposits, etc. and any communications that may have modified the original agreement(s).Also what did the seller sign on 3/31?

Fixing ROE is easy, cash out refi.

If you can’t reasonably beat 11.8% (or whatever the real number is), then hold onto the property.Raising the rent from $750 to $850 or $1200/year will result in a 3.2% ROE increase.

I have people calling in saying borrowers are deceased to slow sales and sheriffs will cancel a sale without any proof.I have foreclosures overturned 8 months later on a verbal request.