Most people fail to understand rate of return because, they confuse
cash flow with, "making something on their money." They can't see
their wealth building so, they think that they are not making
anything.
In real estate, rate of return means the total amount earned and
it includes but, not limited to cash flow. Some of your wealth may,
for a short time, be invisible because, you don't actually have the
green stuff in your hands. The amount of your rental income, after
expenses, is your cash flow. This, however, is only part of your
return for the year.
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