I was referring to data he posted in a different thread. He posted his numbers for Return on Equity (ROE).

Return on Equity = (the way he calculated it) Cash Flow + Appreciation + Loan Reduction + Tax Savings divided by down payment.

*************
What I originally said (and you first commented on) is he didn’t factor in the interest deduction when figuring his tax savings. He confirmed that by saying he purposely overcompensated by adding in too much depreciation (he didn’t subtract the land from the basis).

Make sense now? I got a feeling we are saying the same thing.