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Updated about 4 years ago on . Most recent reply
Help me analyze. I always feel like I use the calculator wrong
*This link comes directly from our calculators, based on information input by the member who posted.
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To get a cashflow like that you're not in a great area, and it's not a newer home. So assume that you're going to get minimal or even slightly negative real value when you sell (home appreciates slower than inflation). That's not bad, just means you're making all your money from the cash flow. On paper that looks pretty good. Just be careful because the automatic calculators don't necessarily adjust your maintenance and CapEx costs accurately based on the type of tenant and age of home you're getting. Also, on a lower value home a $1000 water heater replacement is going to have a much bigger impact to your returns than on a nicer home renting for twice as much. Assume you're going to get less than is being projected. Personally I'd pass, but if you ask 5 people that you'll get 6 opinions.