you got it all in because that’s how much you got to pay to pay the house off fifty four thousand four hundred so you’re going you’re going to rent the property out for it’s a two-bedroom one-bathroom house you’re going to rent out for 1,100 a month to attend eleven hundred month I’m gonna say rent renter all right so now I’ll be my phone that’s right cuz I’m getting pretty deep into this now can’t turn back now now 1,100 times 12 is thirteen thousand two hundred times four

because you’re going to charge them that four year right so that’s going to be your gross income on this property 13200 a month I mean a year I’m sorry now you’re going to have expenses the property management is 10% of whatever the rent is so tiffin center of the Ring we already know it’s a hundred and ten dollars so you want to pay a hundred and ten dollars every month for property management now let’s throw in another 100 just for like emergency fund right

so two hundred and ten dollars times twelve go and give us twenty five hundred and twenty dollars that’s expenses actually expenses now how’d you get your rate of return you subtract your gross from your expenses which is going to give us 13200 takeaway twenty five twenty so your total net that you want to make from this property ten thousand six hundred and eighty dollars a year you want to take this number and divide and you’re going to divide this number

your neck by your uh your all in price and that’s going to give you you want to buy how much you get by how much you owe on the property and so that’s going to give you your rate of return your away but I’ll talk about and that’s going to be zero point one nine six percent which is you over twice one two you’re ready to return for this property is 19.6% now is 19.6% better than which was put in your savings that to 2% and 4% for a mutual fund and a three percent from


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