Total ROI (Year 1)

Combined return from cash flow, appreciation, loan paydown, and Cash Flow from Depreciation™ in Year 1.

Example Result

Sample Data

14.82%

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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Total ROI (Year 1) Formula

(Cash Flow + Appreciation + Principal Paydown + Cash Flow from Depreciation™) / Total Cash Invested x 100

(-$4,246 + $11,550 + $3,129 + $2,688™) / $111,163 x 100

14.82%

What This Means

A sample property priced at $385,000 with $2,850/month rent has a total roi (year 1) of 14.82%. Most people only think about cash flow, but real estate builds wealth four ways simultaneously. Total ROI reveals the complete picture. A property with modest cash flow might deliver 20%+ total ROI when you include appreciation, someone else (your tenant) paying down your mortgage, and the tax savings from depreciation.

Where This Value Comes From

Total ROI (Year 1) is not entered directly — it is calculated from Cash Flow Before Tax, Total Cash Invested, and Cash Flow from Depreciation™. See the formula breakdown above and the detailed inputs below.

Calculated From

Total ROI (Year 1) is calculated using these inputs:

Cash Flow Before Tax

Cash remaining after operating expenses and debt service.

-$4,246

Total Cash Invested

Total cash committed to the property: closing costs, rent-ready, reserves, and negative cash flow.

$111,163

Cash Flow from Depreciation™

Additional effective cash flow generated by depreciation tax savings.

$2,688

Used to Calculate

Total ROI (Year 1) is used as an input for these calculations:

Equivalent Stock Return

Platform Distribution

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Why It Matters

Most people only think about cash flow, but real estate builds wealth four ways simultaneously. Total ROI reveals the complete picture. A property with modest cash flow might deliver 20%+ total ROI when you include appreciation, someone else (your tenant) paying down your mortgage, and the tax savings from depreciation.

Detailed Explanation

Total ROI captures all four wealth-building components of real estate in a single number: cash flow, property appreciation, mortgage principal paydown, and Cash Flow from Depreciation™ (tax savings from depreciation). It represents the total first-year return on your cash investment.