Description
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.
