Have a look at an amortization schedule for a new house and subtract the principal payment from each moth when comparing it to your rent payment.

In order to qualify for the principal residency exclusion, an owner must pass both ownership and usage tests.

NOI represents the property's income after operating expenses but before debt service (mortgage payments) and income taxes.Evaluate Cash Flow: Deduct the mortgage payment (principal and interest) from the NOI to determine the property's net cash flow.

(I set aside 20K from the rents after mortgages are paid, so basically I take in 68K a year, save 20K for vacancies, have 48K left over, etc.).Principal pay down is 67K a year.Appreciation is 500-800K a year in a good year.

If you pay on time on the first day of every month all the monthly payments go to principal and you don't pay any interests until June 2023.

IMO a little silly to buy 500k all cash when you could spread it out and get cashflow + appreciation + principal paydown.

Assume a 30 year rate at 7.125% say and you have a monthly principal & interest payment of 1653.78.

If for example a home is selling for $225,000 it will have an estimate of $1,462/month.With 25% down the calculator shows: $1,023 per month Principal and interest $806Property taxes$125Homeowners insurance$92How can I get a better idea of the total including everything?

From what I understand, equity on a property is the amount of money a property is worth minus the amount of money owed on the mortgage on the property.At least one article has said that the principal remaining on the mortgage is the only component of the mortgage that is accounted for when determining the amount of money owed on the property’s mortgage when calculating the equity one has on a property.I am not sold on just factoring a mortgage’s principal into the amount owed on a mortgage because if interest is also owed on the mortgage for the property, the interest should be accounted for in determining the amount of money owed on a mortgage, correct?

If he sells it using Seller Financing, I *think* he only has to pay the recapture tax on depreciation in the year of the sale plus the capital gain on the percent of principal paid that year.