All Forum Posts by: Kyle Rowe

What method do you guys use for calculating ROI on rental property? I've been searching around but, almost every method gives me a different rate of return and some use future sales of the property in the equation which in my opinion is not a factor at my age. Along with the method, what is an ideal ROI? And does that factor in for inflation, etc? Is there a rule of thumb as far as making X % more than commercial interest rates?

Thanks all!

What method do you guys use for calculating ROI on rental property? I've been searching around but, almost every method gives me a different rate of return and some use future sales of the property in the equation which in my opinion is not a factor at my age. Along with the method, what is an ideal ROI? And does that factor in for inflation, etc?

My boss and I both are doing rentals. We are separate but, we discuss them quite often. He is big on using as much leverage as possible. Pretty much exactly what you said Justin on the 80% rule. I just am not a fan of debt but, I do understand commercial debt is entirely different than personal. I have zero personal debt for that reason.

0% down was great! I knew my local banker and he was able to personally appraise the properties last year and since they were bought so far under what he felt market value was I was able to do so. I have not bought a house this calendar year yet, but I was told the in-house appraising is now no longer allowed which will most likely mean back to 20% down. Time will tell.

Go big or go home right?

Hi all, I'm new to this forum and the landlord gig. I've been at it since last
June and have had pretty good luck thus far. I'm 24 and have a lot to learn. I bought 5 properties in a 6 month span last year. 3 of which I managed to finance 0% down which many say is unheard of. Keep in mind I live in rural America so rental property around here sells from $15k to $30k all day. Right now I am currently just building a cash surplus and hunting for my next bargain. I am debating on whether I should focus on paying off the houses early or just continue adding property? I set my properties up on 10 year notes at 5% interest. Thanks all!