Enter purchase price, costs, rent and appreciation to see multi-year net profit, total return and the compounded annual return.
Two sources are combined: net rental income accumulated over the holding period and the appreciation at exit, minus purchase costs. Looking only at yield or only at appreciation is misleading.
Dues, vacant months, repairs and tax together take 10-20% of rent. Complexes with high dues push this up. You can adjust the ratio for your own property here.
Total return is cumulative for the whole period; the annual figure is compounded (CAGR). A 150% total over five years is about 20% a year — dividing arithmetically (30%) is wrong.
Past growth does not guarantee future returns. Try scenarios below and above expected inflation; the row showing how much of the return comes from rent versus value makes the decision clearer.
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