Why Rental Property ROI Isn't As Important As You Think

The ROI (return on investment) of a rental property is arguably one of the most calculated metrics when deciding whether or not to invest. Even veteran landlords tend to look at ROI as the sole metric that decides whether or not something is a “deal”. But, in the 2022 housing market, more and more landlords are seeing a massive boost in equity, and new investors are finding cash flow harder and harder to find. Has ROI kept its relevance?

Welcome back to another episode of Seeing Greene, where expert investor, agent, author, and real estate investor, David Greene, takes time to answer the BiggerPockets community’s most top-of-mind questions. In this episode, we touch on topics such as how to scale your portfolio on limited funds, whether or not to invest in tenant-friendly states, long-distance house hacking, and the foolproof way to decide whether to hold or sell in 2022.

Want to ask David a question? If so, submit your question here so David can answer it on the next episode of Seeing Greene. Hop on the BiggerPockets forums and ask other investors their take, or follow David on Instagram to see when he’s going live so you can hop on a live Q&A and get your question answered on the spot!

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Ask David Your Real Estate Investing Mentioned in Today’s Show:

BRRRR:

Long-Distance Real Estate Investing:

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A WAY Better Metric than Cash on Cash

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You Should Never Sell Off Your Real Estate Portfolio,

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Investment Property Loans—The Ultimate Guide to Funding Your

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Connect with David on BiggerPockets:

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Show notes at: Intro

03:07 Quick Tip

04:07 How to Scale Your Portfolio Faster

11:07 Investing in a Depopulating Area

16:45 Long-Distance House Hacking

21:02 Critiquing the Cash Flow Argument

30:30 Investing in Non-Landlord Friendly States

33:57 What Do You Think of Seeing Greene?

34:51 Hold for Cash Flow or Sell for Capital?

48:20 Maxing Out on Mortgages

51:21 Investing FOMO and Buying Now or Waiting

56:22 Ask David Your Question!

Recommended Reading >> bit.ly/32kRpzw

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