return on investment calculation

[Itay Heled]

Hello BP members!

I am selling a rental duplex In Barrie Ontario and wondering if the math i did  for estimated return on investment in 5 years  is correct. 

(just to clarify , my question is not if the numbers i present  in section A are correct. 

I am just asking if the math i did on section B is correct .)

A assuming the following :

purchase price: $539,900

buyer /investor pays  20% down payment : $107,980

mortgage rate fix for 5 years 3.4% 

annual appreciation on this market  5%

assuming cash flow of the property is 0  (tenant rent pays all expenses including mortgage) 

B annual return on investment :

after 5 years the market value of the house based on 5% appreciation  per year,  would be $689,900

mortgage balance at end of 5 years term $386,593

equity in property after 5 years: $303,307

net profit (equity minus down payment) $195,327

profit per year $39,065

annual return on investment (profit per year divided by down payment) = 36% annual return on investment

make sense?

thanks for your time

Itay