Re: Help with some analysis...please!

[Shane Dari]

So my friend is trying to help me learn the ropes and has asked me to solve the following problem. I've solved the problem but only because I downloaded some property analysing software that figured it out for me.

If anyone can please solve and let me know how exactly you got to the answer I'd be greatly appreciative. Thanks!

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"What I wanted u guys to figure out is this:

Find the sweet spot/range for the best ROI in % for the following:

Property value between 125k to 350k
mortgage rate between 6 to 8.5%
rental income is 10 to 12% a year of the total value of the property
property tax is 2%
management fee is between 25 cents to 45 cents per sq ft.
property size realistically will be around 600 to 900 sq ft for this price range.


Find the best ROI range.
Thus meaning how much the initial investment is vs the cash flow income vs. actual profit!

cheers,
J"