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.
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David Greene:
This is the BiggerPockets Podcast show 603. I like to take a bigger perspective. I like to look at the whole country and say, “What’s going on and how does that affect individual markets?” And then when I find the market that I like, that’s when I get involved and say, “What’s the ROI on this property versus that?” I think, my humble opinion, too many people start by looking at a property, finding what cash flows, and then trying to justify buying it based on whatever macroeconomic stuff that they look at or ignore.
David Greene:
What’s up, everybody. This is David Greene, your host of the BiggerPockets Podcast, here today with a Seeing Greene episode. On today’s episode, I will take your questions, your comments, your concerns, what the…