Calculations when converting current home to rental (COC, etc)

[Christian D.]

How would one perform these "deal analysis" calculations when converting current home to a rental property?

Say we have 2 scenarios:

1. Converting to rental while keeping current financing:

• 15 yr fixed @ 2.85%
• Purchase price $106k
• Home value: $150k
• Mortgage balance $50k

2. Cash out refi before converting to rental (after satisfying any occupancy rules). Down payment for next house helped along with cash out liquidity.

• 30 yr fixed @ 4%
• Home value: $150k
• Mortgage balance: $90k

ARV is pretty self explanatory...but how do I look at COC and other sort of calculations like that. What do I use for purchase price...$90k? What about down payment? For scenario 1 the down payment and purchase price was a decade ago...is that still relevant?

Can anyone provide any guidance? It's confusing because I already own the property and therefore don't have a straightforward (current) purchase price, down payment, etc, that seem to be the starting point for the analysis.