If you buy a condo and put it on the rental program, what kind of cash flow can you expect? And if the condo appreciates, what is the total return on your cash invested? Is there a cost of ownership analysis?
We determine the answer for you, in three steps:
- Estimate the monthly cash flow, based upon the down payment, interest rate, historic rental income, estimated expenses, etc
- Calculate the annual appreciation rate for the specific condo complex (based on actual sales)
- Calculate the total return on the cash you invest (down payment plus any negative cash flow) vs the cash you receive when you sell (less selling expenses)
And don’t forget about Federal & State tax benefits, which can be substantial! Wouldn’t it be fun to live and play in your investments, rather than just holding a piece of paper such as a stock certificate or a government bond?