A Good Tool to Evaluate Rental Property
March 27th, 2006 by Grant in: Real EstateI came across this online mortgage/rental calculator several months ago at http://mortgage-calculators.org. I found it very useful in trying to determine cash flow for potential rental property.
Generally, I use about $1000 per year for insurance based on what I have my first rental insured for, and I can find the property tax amount online. Depending on the condition of the house, I use 1% of the selling price of the house for yearly maintenance fees. Plug all the numbers in and see what your after-tax cashflow is.
It’s pretty handy, and even goes so far as to tell you the yearly addition to your net worth. I don’t rely on it completely, but with the calculations I’ve done so far, it’s pretty darn accurate.
Give it a shot, and add it to your set of REI tools if you wish.
Investment/Rental Property Calculator
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