CalculateRealEstateROI

Portfolio · Guide

Return on Equity (ROE) at Portfolio Level

ROE drives every allocation decision — refinance, hold, sell, rotate.

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

Key takeaways

  • ROE > 10% hold.
  • 6–10% review.
  • < 6% reallocate.
  • Refi to lower equity.
  • 1031 to higher-ROE asset.

Core concepts

ROE formula

(NOI + appreciation) / equity.

Thresholds

>10 / 6–10 / <6.

Action

Hold / review / reallocate.

Step-by-step framework

  1. 1Compute quarterly.
  2. 2Threshold action.
  3. 3Track over time.

Common mistakes to avoid

  • No ROE tracking.

Frequently asked questions

ROE formula?

(NOI + appreciation) / equity.

Threshold?

6–10–12%.

Action below 6?

Refinance or 1031.

Frequency?

Quarterly.

Action checklist

  • ☐Quarterly ROE.
  • ☐Threshold review.
  • ☐Action plan.

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