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Detail: The condo house price is $267K.
Mortgage= $213.6K, downpayment = $53.4K.
Yearlycost: Mortgage (6.125%) = $1298 * 12, Tax 267K * 1.065% = $2844K, insurance andHOA= $190 * 12 + $796 + $68 membership fee * 12 Total cost = $15576 + 2844 + 3892 = $22312
Rental income = RI ( normally it should be the 5% of the cost of the house) Extra cost = Total cost - Rental income = $22312 * 10 - RI.
After 10 yrs, If the hous appreciation is 5%, the final sale price for this comdon will be $267(1+0.05)^10 = $435K, the mortgage left: $179346, and interest paid = $121489, with 5% commission ($21750),
Earn $233904 (EV)
Minimal investment percentage should be 12%. EV - $223120 + RI = $53.4K(1 + 12%)^10 = $165.85K
Then RI = $155066
RI = rate * 11 * 10, so the rate = $1409.
If we rent it with $1500, the X = 13.55%
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