For something more robust, tools like Excel or online calculators from financial planning sites might better suit your needs.Your ROI Formula:ROI = (Net Cash Flow ÷ Total Out-of-Pocket Investment) × 100For your scenario:Net Cash Flow = Annual Rental Income - (Mortgage Payment + 401k Loan Payment + Other Expenses)Total Out-of-Pocket Investment = $40,000 cash + $50,000 loan payments over 5 years.I came across a piece in Bloomberg recently discussing creative financing, and they touched on ROI calculations for multiple loans.Personal anecdote: A buddy of mine leveraged a 401k loan for a fourplex.

I know someone recently who had a NY loan and they could not find a servicer to touch it because it was being self serviced - so they had no way of selling it as no investor would take on that risk.The other concern is usury laws.

If you have any questions, please feel free to reach out to me.David, We would love to get in touch with you and get your expertise.

@Aaron Raffaelli we call all the cities that touch Detroit, the Ring Cities - except the Grosse Pts.These cities are mostly Class B and are solid rentals.Detroit overall has gentrified to Class C, but at least a third of the city is Class D still.Check out the interactive map on our website and watch for whats coming...

I wouldn’t touch long-term rentals as the laws are extremely in favor of renters.

Once you've figured all that out, start running numbers and get in touch with an investor focused agent who also invests themselves.

I've been giving lots of thought buying a lot for build and sale of a SFR, and would like to touch base with like minded folks.Thank you,Shawn I was in the 6 month program and paid $5000.

Yup, a touch higher than here in the Midwest.

I've been away in SoCal for about 4 years so I'm a bit out of touch with the market here. 

Its locked up in the equity of the property and it will cost you money to touch it.