steve is right on the money. its simple really, rent less...

steve is right on the money.
its simple really, rent less interest less rates = net income. if this is negative (in the majority of cases it is) then you must rely upon capital gains to cover the difference. and to ensure you are calculating a "real" return economically speaking, this should be AFTER inflationary costs.
now if you disregard inflation, no problem, but basically you may have more money, but not more wealth.