Investment Property Calculator
February 12th, 2010
An investment property calculator will help evaluate how good of an investment the property is, the maximum price you can pay for the property and still make profit. In fact there are many investment property calculators. Below is an example of a common investment property calculator that helps Real Estate investors calculate the return on their investments.
Rate of return on investment property calculator
 |
When investing in an investment property, investors want to know what their rate of return is. A rate of return on investment property calculator uses the calculation shown below. For simplicity in our example, assume the price of the property is $100,000 and the property has appreciated 5% to the value of $105,000. |
This translates to the gain of 50% on your investment property because you put down $10,000.
| Price of property | $100,000 | |
| Down Payment | $10,000 | |
| Appreciation (assume 5%) | $105,000 | $100,000 x 1.5 |
| Gain | $5,000 | $100,000 x 5% |
| Rate of Return on Price | 5% | $5,000/$100,000 |
| Rate of Return on Investment | 50% | $5,000/$10,000 |
It is not enough to use a good investment property calculator
Even using a good investment property calculator, you will still need to do a lot of the Real Estate investing analysis, finding Investment Properties, negotiations, dealing with contractors and rehabbers and lining up buyers yourself. Even a good investment property calculator cannot predict your local Real Estate market, what will be in demand, what will not sell and what people want. In order to be successful at investing in Real Estate, you need an eye for it in addition to the numbers.
Related posts
Posted in Investment Properties | 
Tags: calculator, investment property, investment property calculator, rehabbers
Leave a Reply
Enter ZIP or City, State:
 |
 |
 |
||
 |
 |
|
 |
||