After owning a property for a few years, is using return on initial investment the best way to measure the performance of your rental property? No, it's not. You're building equity, which has an opportunity cost. Do you leave it in the current property or take some or all of it out to buy more properties? What you do or don't do with the equity, can have a big impact on your rental portfolio.
The podcast covers (1) How to calculate and understand return on equity. (2) The three common scenarios for determining your equity opportunity costs. (3) An overview of the "Equity Optimization" Spreadsheet (4) A real-world case study for optimizing return on equity.