ROI has an expiration date — here's the metric that replaces it

When Return on Investment stops being useful and what to use instead

ROI is the wrong metric.

Not always. But more often than most investors realize.

Let me explain.

Return on investment is perfect for two specific moments in the life of a rental property. The beginning and the end.

• At the beginning — when you’re analyzing a deal before you buy — ROI tells you exactly what you need to know. “Based on what I’m about to invest…