Is there a right way to look at loan interest incurred impact on the rental yield, since interest incurred for loans are part of the cost as well?

Hi Bryan, yes you are right!

Interest incurred for loans are definitely a cost and should always be added when calculating NETT profits.

The opposite is also true! People tend to undervalue their profits.

For example,

If a person has bought a $1 million house, but has only paid $250k so far.

They then sell the house for $1.125mil, and claim their profit was 12.5%.

Actually, to me, the profit was 50%! since the outlay was only $250k and profit was $125k. Funny how some people calculate stuff =)