The ROE calculation was created to bring together the profitable aspects of real estate but usually were not supposed to be calculated together. At its heart is a simple return on investment equation. However, pick at it enough and it gets deep. Still, it is a useful calculation to judge how well properties perform over several different areas, locations, and sizes.
Like I said, cash flow is easy and most everyone knows how to calculate that.
Tax savings/benefits, is much more difficult to quantify and so therefore I leave a simplified calculation so that people can see how it is done.
