CalculateRealEstateROI

Strategy

Opportunity Cost

True cost of holding any asset = the return of the best alternative use of that capital.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Core concepts

Mark-to-market thinking

Would I buy this asset today at current value?

Trapped equity audit

Compare current yield-on-equity to redeployment yield.

Examples

  • Holding 3% cap rental vs 6% redeployment → 1031 unlock $50k/yr value.

Practical applications

  • Annual portfolio reviews.
  • 1031 timing decisions.

Common mistakes

  • Anchoring on basis instead of current value.
  • Ignoring transaction costs in switch math.