MMM Rental ROI
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Green fields are for user supplied data
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Renter OccupiedOwner Occupied
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Acquisition Cost
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Current Value (Purchase Price)\$450,000\$630,000\$450,000\$550,000
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Closing Costs1.5%\$6,750\$9,450\$6,750\$8,250
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Repairs/Improvements\$25,000\$0\$25,000\$0
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Total Investment\$481,750\$639,450\$481,750\$558,250
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Calculate Mortgage on 100% (a)100%100%100%100%
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Principle\$481,750\$639,450\$481,750\$558,250
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Rate (b)6.5%6.5%3.5%3.5%
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Term360360360360
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Monthly Payment\$3,045\$4,042\$2,163\$2,507
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50% Rule (vacancy, repairs, property management, taxes, insurance) (c)50%50%35%35%
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Market Rent\$2,300\$2,800\$2,300\$2,439
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Calculate Return
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Rent\$2,300\$2,800\$2,300\$2,439
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- Mortgage-\$3,045-\$4,042-\$2,163-\$2,507
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Net Return-\$1,895-\$2,642-\$668-\$921
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Annual Gain/Loss-\$22,740-\$31,701-\$8,019-\$11,057
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Rate of Return-4.72%-4.96%-1.66%-1.98%
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(a) In reality, you would put down >= 25% for investment property and about >= 20% for owner occupied
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(b) Renter occupied mortgage vs. owner occupied mortgage rate
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(c) 50% rule for renter occupied, vacancy and management are mute for owner occupied, so estimate 35%
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