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Updated over 7 years ago,
Luke CarlPoster
#3 Short-Term & Vacation Rental Discussions Contributor
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How to Calculate Payoffs?
My brain isn't wrapping itself around this one so I thought I'd ask for help.
All hypothetical.
Lets say I have 1 property with a purchase price of 125k and I have a mortgage on 100k at 5%
I'm netting $1000 per month.
I apply all profits to principle.
How long does it take to pay this off?
The bigger question is... If I scale to lets say to 5 properties all with the same numbers....
How do I calculate how long it takes to pay off the first one (weather its in years/months or some sort of ratio) using the net profit from all 5 of them.... Then to pay off the second one with the now larger net profit from the first one and from the other 4?