I ran into a friend yesterday who purchased a second home as an investment property. He is renting it, and hopes to make good money. I had cautioned him before about swings in the market, but he was not concerned...

So, with the purchase of his new rental property I asked him, "What is your ROI?" His answer: "What is ROI?" My jaw fell off my face and rolled around on the floor.

Do you often see people purchasing investment properties who are unaware of this basic measurement of investment success?