ROI is one of those buzz words in real estate investment. People say it all the time but no one really seems to know what it means or how to actually measure it, do they? ROI, or return-on-investment, can generally be summed up as the profitability of any given investment.
Just like positive cash flow, the notion of a good ROI has long been the gold standard for real estate investing. ROI can come in the long term through appreciation (which is what most people who take on big property renovations are banking on), but also through the short-term (such as just buying an investment property and achieving positive cash flow).
Topics: increase your ROI