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Updated over 10 years ago on . Most recent reply

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Brandon Sturgill
  • Real Estate Broker
  • Columbus, OH
1,770
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Recouping Initial Investment

Brandon Sturgill
  • Real Estate Broker
  • Columbus, OH
Posted

Is there a basic calculation for the time it take to recoup the initial outlay when purchasing a rental property...for example:

If I buy a SFH at $100,000 with a 25% down payment and $10,000 in costs to ready for a tenant, how long does it take to recoup the initial outlay?

And what about mortgage vs. positive cash flow...say the mortgage payment on the purchase is $800/mo. and the rent is $1,300/mo....nowhere near the 2% rule....and does the fact that the tenant is building equity in the property matter?...or appreciation? 

  • Brandon Sturgill
  • 614-379-2017
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Realize Property Management Group
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13 Reviews

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