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Updated over 7 years ago on . Most recent reply

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Luke Carl
#3 Short-Term & Vacation Rental Discussions Contributor
  • Rental Property Investor
  • Tennessee Florida
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How to Calculate Payoffs?

Luke Carl
#3 Short-Term & Vacation Rental Discussions Contributor
  • Rental Property Investor
  • Tennessee Florida
Posted

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? 

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