Why You Shouldn’t Use ROI for Comparing Real Estate Deals
It's common for small residential real estate investors, especially new investors, to compare deals in terms of ROI (return on investment) and talk to other investors about their cash-on-cash return. And often, ROI is indeed the sexy attractive number, 10%-20%, investors are going for in the end, but using it to compare deals and to make a purchase decision can lead to terrible outcomes. This article will dive into this common mistake for new investors and present a better way to understand any deal that comes to you.
