Math question

[Brendan Blake]

Say I have this example

Rental Property: $100,000

Loan Amount: $75,000

Loan Rate: 5%

Years: 30 Year Amortized

Monthly Payment amount: $402.62

LTV ratio: 75%

My money is being put to work in two ways, 1) creating a pos cash flow 2) building equity in an asset. Obviously cash on cash return is decently easy to calculate but I find the equity return to be harder to calculate. Say that the property appreciates 1%, how do I calculate the return on the mortgage payoff, obviously less future interest is needed to be paid because the bank now owe less of it and since there is an appreciation in the home my equity I'm building is then worth more.

Any formula that would delve into this would be appreciated.