My management team doesn't know how to use their accounting software to correctly implement even though I provided the formula.

;) I keep a spreadsheet with the amortization of each property and projected rents over the life of the loan using formulas for annual increases in insurance, property tax, operating expenses like maintenance, market value through appreciation and rent.

Does anybody know a simple formula to calculate ROI  and the estimated ROI in the future of the property?

Do use a formula or comps?

The formula for ROE isNet income / Amount of EquityAs your equity goes up every month from paying down the principle your ROE goes down.

You need to know any two of those (X, Y, and/or Z) and then make 100% certain you are okay with the other one.For example, if you know you can resell a property for $50K (Z) and you want to make $5K in profit (Y), then you must purchase the property for no more than $45K (X).Or, if you know you can buy a property for $60K (X) and you want to make $3K in profit (Y), then you better be 100% certain you can sell it for $63K (Z).It gets more complicated when it comes to determining Z, which is where the formulas come in, but keep in mind that those formulas are prices at which your buyers must purchase, so to figure out Z, you need to know your buyers criteria (or formula).Does that make sense?

The 2% rule is a quick formula, but isn't the end all...you may see potential in a property that only yields 1.25% but it might still work. 

The "secret formula" is that there is no secret formula!

I really like the podcast vacation rental formula.

Keep in mind, this is just a rough formula.