ROI, or Return on Investment, serves as a crucial metric for assessing the profitability of real estate investments. It quantifies the financial return relative to the investment's cost. The simplicity of calculating ROI makes it a widely used tool for evaluating various investments.


ROI is straightforward to understand and calculate for almost any investment. This simplicity allows investors to quickly compare the profitability of different ventures.

Snapshot Analysis: 

It offers a financial "snapshot" of an investment, aiding in decision-making regarding buying, selling, or adjusting a portfolio.

Importance of ROI in Real Estate

While ROI provides a quick overview of an investment's profitability, it may not capture all complexities involved in real estate. Despite its simplicity, ROI is crucial for:

Quick Assessment: 

Investors can gauge the "health score" of potential investments, identifying properties with cash flow issues or negative ROI.


When aligned with overall investment goals, ROI calculations help in making informed decisions and building a robust real estate portfolio.

BuyProperly's Approach to ROI

At BuyProperly, we prioritize ROI calculations as a benchmark for property profitability. Most investors can anticipate projected annual returns ranging from 10-40%.

Read about How to Calculate ROI in Real Estate to Maximize Your Profit | Buyproperly