Return on Investment buying this 2 Home Property
Need some help calculating the profit on your real estate investment? Below are five Return on Investment (ROI) scenarios that detail down payment, income, property tax, property insurance, interest expense, and maintenance.
Figures based on assumption that investors mortgage rates are between 5.5% and 6.00%
| SCENARIO 1
| |
| Investment | Down Payment
| $359,000 |
| Return | Income ($3K/mth)
| $36K
|
| | Property Tax ($340/mth)
| $4,080 |
| | Property Insurance ($62.50/mth)
| $750
|
| | Maintenance | $1K |
| | PROFIT | $30,170 |
Return on Investment
|
| 8.40%
|
| | SCENARIO 2
| |
| Investment | Down Payment (20%)
| $71,800
|
| Return | Income ($3K/mth) | $36K
|
| | Property Tax ($340/mth) | $4,080
|
| | Property Insurance ($62.50/mth) | $750
|
| | Maintenance | $1K
|
| | Interest Expense (5.5%)
| $15,796
|
| | PROFIT
| $14,374
|
Return on Investment
| | 20.02% |
| | SCENARIO 3
| |
Investment
| Down Payment (20%) | $71,800 |
| Return | Income ($3K/mth)
| $36K
|
| | Property Tax ($340/mth)
| $4,080
|
| | Property Insurance ($62.50/mth) | $750 |
| | Maintenance
| $1K
|
| | Interest Expense (6%) | $17,232
|
| | PROFIT | $12,938
|
| Return on Investment | | 18.02%
|
| | SCENARIO 4
| |
Investment
| Down Payment (25%)
| $89,750
|
| Return | Income ($3K/mth) | $36K
|
| | Property Tax ($340/mth)
| $4,080
|
| | Property Insurance ($62.50/mth)
| $750
|
| | Maintenance | $1K
|
| | Interest Expense (5.5%) | $14,809 |
| | PROFIT | $15,361
|
| Return on Investment | | 17.2%
|
| | SCENARIO 5
| |
| Investment | Down Payment (25%)
| $89,750
|
| Return | Income ($3K/mth)
| $36K |
| | Property Tax ($340/mth)
| $4,080 |
| | Property Insurance ($62.50/mth) | $750
|
| | Maintenance | $1K |
| | Interest Expense (6%)
| $16,155
|
| | PROFIT | $14,015 |
| Return on Investment | | 15.62%
|