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An investment property can be an excellent investment. This calculator is designed to examine the potential return you might receive from an investment property.
The money, you the investor, actually have to put down on the property. (out of pocket). Usually it is the amount of earnest money you invest in property.
The amount of interest the investor pays annually to borrow money from the lender. Rates and programs can vary, check with lender for more information.
The approximate value of the land that the property sits on. Usually available on the tax records in the county the property resides. You can not deprecate land value.
Anything that you have that is used for the investment property, such as washer/dryer, range, refrigerator lawn equipment, fixtures and other.
The rate annually you can depreciate on the personal property.
Recovery period for five-year personal property.
The amount the property is on an annual basis appreciation occurs on entire value of the property
Total amount you can depreciate annually on personal property and building value.
The amount of income available after vacancy.
The total annual expenses including real estate tax, repairs, management fees, insurance, utilities, supplies, and other miscellaneous expenses.
It's the percentage amount- based on the income 23 - 30% is considered average.
Total annual amount of expenses.
What's left after expenses, principle payment and interest.
Your payment to lender including principal and interest.
The amount left annually as you pay down the principle and interest.
Cash flow before tax + principle reduction + taxes saved/paid + appreciation divided by cash invested. Includes appreciation.
Does include same formula above except appreciation.
AKA= Net operating income divided by price, capitalization rate, rate of return- Anything in Double Digits is Fantastic!
Cash flow before tax % cash invested.
Annual Percentage of increase of appreciation of property.
The total analyzation of returns of the property.
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