Return on Investment
Also known as ROI
A measure of profit relative to the money you invested, expressed as a percentage.
In plain English
ROI compares your total return (income plus appreciation) against your total investment (down payment, closing costs, and improvements), giving a percentage that helps evaluate whether a property was — or would be — a good investment.
ROI is a useful comparison tool across different properties or investment types, though it should be considered alongside risk and time horizon, not in isolation.
Where you'll run into it
Guides and tools on TheBuyingPath that cover return on investment in context.
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