Understanding ROI in Real Estate Return on Investment (ROI) is a key financial metric used to evaluate the profitability of an investment. In the context of real estate, ROI measures the efficiency and potential returns from purchasing and managing rental properties, or any real estate investments. Essentially, ROI helps investors determine how much gain or loss they can expect relative to their invested capital. Calculating ROI in real estate typically involves dividing the net profit from an investment by the initial cost of the investment, and is expressed as a percentage. For example, if an investor purchases a property for… Continue Reading