Two years with the same tenant is better mathematically and finacially, because if your having to change out your tenants yearly, that's twice the amount of vacancies, if your using a PM then you'll have to pay them twice the amount of rent for the first month (Renter's Warehouse requires 1 month rent for example), if your managing the property yourself then that's twice the amount of showings at least and that's time which equals money, then there's twice the amount of maintenance to turn the property over for the next renter, etc......   

After receiving my degree in Mathematics from the University of Arizona, I became a Equity Floor Trader at the Pacific Coast and Chicago Stock Exchanges.

I enjoy math, and I'll tell you it's hard to find advanced mathematics that are useful for real estate.

However since Cash Flow is as an objective, OPM is apparently mathematically advantageous to decrease capital used per generated $1 of CF, depending of course on the interest rate and the down payment percentage. 

Account Closed It will take me a minute to decipher what you are mathematically presenting.

Please be careful with mathematical yield.

For the non-mathematically inclined, my stuff is still relevant to you.

Real estate is a much simpler mathematical model that moves at a glaciers pace in comparison.  

I get how to do the mathematical equation but don't know how to get the date.Thanks in advance!

Call this EAP (Earnings after Payments)To dig a little deeper, I'll also subtract the cash I tied up ($150K is about $30K + any rehab or closing costs at time of purchase) and apply a "cost of cash" (what is my opportunity cost of that investment in a fairly safe instrument), along with any EAP (can be positive or negative) and an estimate for my annual equity build (by estimating this from an amortization table).To clarify:Annual Benefit = Annual Equity Build + / - EAP - Cost of CashNote:  This is not accurate / scientific / mathematically rigorous, and I'm not recommending it as a way to calculate returns.