{"id":146603,"date":"2023-02-05T22:56:41","date_gmt":"2023-02-06T05:56:41","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=146603"},"modified":"2023-08-10T13:15:40","modified_gmt":"2023-08-10T19:15:40","slug":"how-to-calculate-roi-on-a-rental-property","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/how-to-calculate-roi-on-a-rental-property","title":{"rendered":"How To Calculate ROI On A Rental Property"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC2541019707\" width=\"100%\"><\/iframe>\r\n\r\n  \n\n\n\n\n<p><span data-preserver-spaces=\"true\">Real estate is widely considered the best and more consistent investment around. However, calculating the value of your investment is more challenging than checking your monthly bank statement. Multiple ways to&nbsp;<\/span><strong><span data-preserver-spaces=\"true\">calculate your return on investment (ROI) for a rental property<\/span><\/strong><span data-preserver-spaces=\"true\">&nbsp;exist. How you choose to do so depends on your situation.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">In this article, we&#8217;ll discuss the importance of calculating ROI for real estate and then show you how and when to calculate ROI for:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Cash flow<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Cash-on-cash return<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Capitalization rate (cap rate)<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Appreciation<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Here&#8217;s how to calculate ROI on a rental property:&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Why You Should Calculate ROI On A Rental Property<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Your ROI measures how efficient your investment is when generating returns. Historically, property values increase faster than inflation. In addition, real estate investors can enjoy monthly cash flow from rental income and multiple tax benefits like depreciation deductions and operating expenses. Other investments don&#8217;t have these to offer\u2014at least not simultaneously.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">However, if you need to consider the many benefits of real estate, it&#8217;s easier to determine your total ROI. You need to accurately measure ROI to know how lucrative or costly your investment is.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">That said, calculating ROI isn&#8217;t always a simple equation. Different real estate investors are looking for different things. Some investors are looking for their monthly or annual cash flow, others are more interested in the ROI of appreciation, and others need to learn<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/2014-06-21-investing-cash-flow-appreciation-whats-difference\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> <\/span><\/a><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/2014-06-21-investing-cash-flow-appreciation-whats-difference\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">the difference.<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;We&#8217;ll cover the basic equations for each of these and much more.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Cash Flow<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Your cash flow is how much you have left over from your rental property each month after paying your operating expenses and saving money you may need for repairs.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">In other words:&nbsp;<\/span><\/p>\n\n\n\n<p class=\"has-text-align-center\"><span data-preserver-spaces=\"true\"><em>Cash flow = total monthly rental income &#8211; total expenses<\/em><\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Let&#8217;s assume Jackie is trying to calculate her monthly cash flow. Here&#8217;s how she&#8217;ll do it:<\/span><\/p>\n\n\n\n<figure class=\"wp-block-table is-style-regular\"><table><tbody><tr><td>Monthly rental income<\/td><td>$1,600<\/td><\/tr><tr><td>Monthly mortgage payment&nbsp;<\/td><td>$625<\/td><\/tr><tr><td>Property taxes<\/td><td>$200<\/td><\/tr><tr><td>Homeowner\u2019s Insurance<\/td><td>$45<\/td><\/tr><tr><td>Property management fees (<a href=\"https:\/\/learn.roofstock.com\/blog\/how-much-do-property-managers-charge\" target=\"_blank\" rel=\"noopener\">10% of rental income<\/a>)<\/td><td>$160<\/td><\/tr><tr><td>Repair reserves budget(10% of rental income)<\/td><td>$160<\/td><\/tr><tr><td>Vacancy reserves budget(5% of rental income)<\/td><td>$80<\/td><\/tr><\/tbody><tfoot><tr><td><strong>Net monthly cash flow(or net operating income\u2014NOI for short)<\/strong><\/td><td><strong>$320<\/strong><\/td><\/tr><\/tfoot><\/table><figcaption class=\"wp-element-caption\">Monthly cash flow example<\/figcaption><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">According to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/rental-property-cash-flow-analysis\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">experts<\/span><\/a><span data-preserver-spaces=\"true\">, &#8220;good&#8221; cash flow is $100-$200 per monthly unit, so Jackie is making a good return. However, what one real estate investor considers &#8220;good&#8221; another investor may find disappointing. If Jackie only earned $320\/mo on a $2 million property, that&#8217;s not a great deal for her. If the $320\/mo is for a $25,000 property, that&#8217;s a different story.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Cash-on-Cash Return<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">While cash flow is one metric to measure ROI, experienced investors will be more interested in the <a href=\"https:\/\/www.biggerpockets.com\/blog\/cash-on-cash-return\" target=\"_blank\" rel=\"noreferrer noopener\">cash-on-cash returns<\/a> of their rental properties\u2014and you&#8217;ll see why.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Your cash-on-cash return is the percentage of your investment in net cash flow in a year. This equation is:<\/span><\/p>\n\n\n\n<p class=\"has-text-align-center\"><span data-preserver-spaces=\"true\"><em>Cash-on-cash return = (Monthly cash flow * 12) \/ Initial out-of-pocket costs<\/em><\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Let&#8217;s reuse the equation to determine Jackie&#8217;s net monthly cash flow:<\/span><\/p>\n\n\n\n<p class=\"has-text-align-center\"><em><span data-preserver-spaces=\"true\">Annual cash flow = $320 * 12<\/span><br \/><span data-preserver-spaces=\"true\">Annual cash flow = $3,840<\/span><\/em><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Now, let&#8217;s calculate her total out-of-pocket expenses. The purchase price of Jackie&#8217;s rental property was $150,000. She made a 20% down payment, or $30,000. She also paid 2% in closing costs, another $3,000, and fronted an additional $5,000 to cover renovation costs.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">In total, her initial pockets costs are: $38,000 (down payment + closing costs + renovations)<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Now, we can calculate Jackie&#8217;s cash-on-cash return:<\/span><\/p>\n\n\n\n<p class=\"has-text-align-center\"><em><span data-preserver-spaces=\"true\">Cash-on-cash return = $3,840 \/ $38,000<\/span><br \/><span data-preserver-spaces=\"true\">Cash-on-Cash return = 0.101 = 10.1%<\/span><\/em><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">In the last year, Jackie made 10.1% back on her initial investment.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Some real estate investors are happy with a 10.1% return, while others will suggest Jackie aim for something closer to 12%. Real estate investors want to outpace the stock market, which has averaged 6% and 7% returns for the last several decades. However, the S&amp;P 500&#8217;s compound average annual growth rate for the last 30 years (2022 excluded) is&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.sofi.com\/learn\/content\/average-stock-market-return\/#:~:text=Average%20Market%20Return%20for%20the%20Last%2030%20Years&amp;text=Looking%20at%20the%20S%26P%20500%20for%20the%20years%201992%20to,%25%20when%20adjusted%20for%20inflation).\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">9.89% per year<\/span><\/a><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">If you want to improve your annual cash-on-cash return, here are a few simple things you can do:<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Increase Rent<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Research how much people pay monthly rent for similar properties in your neighborhood. If Angela charges her tenants $1,675 across the street, you probably can, too. Before you do, make sure you give your current tenants plenty of notice. If they decide to vacate the property at the end of their lease, you&#8217;ll have more time to find new tenants without digging into your vacancy reserves.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">With an extra $75\/mo, Jackie&#8217;s net monthly cash flow increases to $395. Then, her cash-on-cash return is:<\/span><\/p>\n\n\n\n<p class=\"has-text-align-center\"><em><span data-preserver-spaces=\"true\">Cash-on-cash return = ($395 * 12) \/ $38,000<\/span><br \/><span data-preserver-spaces=\"true\">Cash-on-Cash return = 0.1247 = 12.47%<\/span><\/em><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">An extra $75\/mo adds an additional 2.37% to her cash-on-cash ROI.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Refinance<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">If you&#8217;re not looking to raise the rent or your tenant still has another nine months on their lease, you could also refinance your loan to lower your mortgage payment. If Jackie can reduce her payment by $75, she will enjoy the same cash-on-cash return as seen in the example above.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Adjust Your Reserves<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Jackie puts 5%, or $80, into her vacancy budget each month. However, Jackie&#8217;s tenant has lived there for five years, so she has $4,800 saved in her reserves budget. That&#8217;s enough to cover three months&#8217; worth of vacancy. Instead of continuing to add to her reserves, she could remove that budget line item and bring her net monthly cash flow to $400. That would get her total cash-on-cash return to 12.63%.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">If Jackie&#8217;s stashed a pretty penny in her repair reserves budget, she can adjust that instead and realize a higher cash-on-cash return.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Cap Rate<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">The <a href=\"https:\/\/www.biggerpockets.com\/blog\/cap-rate-real-estate\" target=\"_blank\" rel=\"noreferrer noopener\">cap rate<\/a> formula is perfect for deciding what property to buy. Your cap rate is the expected rate of return for your investment based on how much you think you&#8217;ll generate in income.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Here&#8217;s the cap rate formula:<\/span><\/p>\n\n\n\n<p class=\"has-text-align-center\"><span data-preserver-spaces=\"true\"><em>Cap rate = annual net operating income\/purchase price<\/em><\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Remember, your NOI is your income &#8211; expenses.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The goal for cap rates is to get the highest percentage possible. The higher the percentage, the faster you&#8217;ll achieve ROI.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Calculating a property&#8217;s cap rate is important because:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">You can compare investment properties<\/span><\/strong><span data-preserver-spaces=\"true\">: If you&#8217;re torn between two different investment properties, use the cap rate formula to determine which will have a higher ROI. That&#8217;s the property you should buy.&nbsp;<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">You can determine a property&#8217;s profitability<\/span><\/strong><span data-preserver-spaces=\"true\">: The cap rate compares the income you&#8217;re receiving to what you&#8217;re paying for the property.&nbsp;<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">It helps you estimate your payback period<\/span><\/strong><span data-preserver-spaces=\"true\">: Your cap rate percentage will indicate how long it will take to pay back your investment. If your cap rate is 10%, it&#8217;ll take you ten years. If it&#8217;s 5%, it&#8217;ll take you 20.&nbsp;<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Jackie is torn between two properties:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Property 1<\/span><\/strong><span data-preserver-spaces=\"true\">&nbsp;has a market value of $500,000, an annual income of $75,000, and annual expenses of $40,000.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Property 2<\/span><\/strong><span data-preserver-spaces=\"true\">&nbsp;has a market value of $600,000, a yearly income of $85,000, and annual expenses of $45,000.&nbsp;<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Cap rate for&nbsp;<\/span><strong><span data-preserver-spaces=\"true\">Property 1<\/span><\/strong><span data-preserver-spaces=\"true\">:&nbsp;<\/span><\/p>\n\n\n\n<p class=\"has-text-align-center\"><em><span data-preserver-spaces=\"true\">Cap rate = ($75,000 &#8211; $40,000) \/ $500,000<\/span><br \/><span data-preserver-spaces=\"true\">Cap rate = 0.07 or 7%<\/span><\/em><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Cap rate for&nbsp;<\/span><strong><span data-preserver-spaces=\"true\">Property 2<\/span><\/strong><span data-preserver-spaces=\"true\">:&nbsp;<\/span><\/p>\n\n\n\n<p class=\"has-text-align-center\"><em><span data-preserver-spaces=\"true\">Cap rate = ($85,000 &#8211; $45,000) \/ $600,000<\/span><br \/><span data-preserver-spaces=\"true\">Cap rate = 0.667 or 6.67%<\/span><\/em><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Based on the cap rate formula, Jackie should buy Property 1.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">However, before she buys, there&#8217;s one more thing to consider: these calculations are based on the current market, rental income, and operating expenses of the property. If Jackie renovates the property and increases its value by $100,000, then charges more in rent, the cap rate equation will change. For that reason, you should also calculate a property&#8217;s after-repair value (ARV), the cost of renovations, and what you&#8217;ll charge tenants. Then, compare that to the current cap rate calculations.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">If you&#8217;d like to see the cap rate on steroids, read about calculating the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/internal-rate-return-irr\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">internal rate of return (IRR)<\/span><\/a><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Appreciation<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Last but not least is appreciation, which is the increase in your property&#8217;s value. Calculate your appreciation if you want to buy and hold your rental property.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Let&#8217;s say Jackie bought her rental property for $150,000 in October 2007 and is selling it for $450,000 in October 2022; and wants to know her home value appreciation rate. Here&#8217;s how she can find it:<\/span><\/p>\n\n\n\n<p class=\"has-text-align-center\"><span data-preserver-spaces=\"true\"><em>A = P * (1 + R\/100) n<\/em><\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">A = Appreciated value<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">P = Purchase price&nbsp;<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">R = Rate of appreciation<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">n = Number of years after the purchase<\/span><\/li>\n<\/ul>\n\n\n\n<p class=\"has-text-align-center\"><span data-preserver-spaces=\"true\"><em>400,000 = 150,000 * (1 + R\/100) 15<\/em><\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Jackie&#8217;s home value appreciation rate is 7.60% per year.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Unfortunately, Jackie had yet to learn that, in 2007, her rental property would be worth three times its market value in 2022. In an alternate reality, her property could only be worth $200,000, not $450,000.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">For appreciation to work in your favor, live by the classic real estate mantra, &#8220;buy low, sell high.&#8221;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">While we can&#8217;t predict the future, up-and-coming cities and neighborhoods with many of the following attributes are more likely to have higher appreciation rates:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Job growth<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Population growth<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">High occupancy rates<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Diverse economy<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">High wages<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Excellent lifestyle amenities<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Infrastructure development&nbsp;<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Calculating ROI On A Rental Property<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">What equation you choose to use depends on your circumstances:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Use the cap rate formula to determine which property you&#8217;d like to buy, but remember to include the ARV, rent increases, and renovation costs in your calculations.&nbsp;<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Use the cash-on-cash return formula to determine your annual ROI and compare it to how other investments are doing. Adjust your cash flow spreadsheet to improve your net operating income to enjoy better returns.&nbsp;<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">If you&#8217;re considering buying and holding long-term, use the appreciation formula to determine how much your rental property is increasing in value each year.&nbsp;<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">For more information, read about the two&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/2014-02-08-2-biggest-mistakes-made-calculating-rental-property-returns\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">biggest mistakes<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;in calculating rental property returns, and dive deeper into&nbsp;cap rates. Also, check out our forums to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/forums\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">get answers<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;to any real estate relations questions you may have.&nbsp;<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_64dd5ab97ed79\" class=\"visibility-group  hidden\">\n        \n\n<div id=\"hero-block_62df1a82bfc88\" class=\"first:mt-0 hero-block py-4    has-background has-slate-200-background-color has-text-color has-slate-900-color\">\n    <div\n        class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 lg:w-2\/3 \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-large-font-size\"><strong>Analyze Deals Like a Pro<\/strong><\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:16px\">Deal analysis is one of the first and most critical steps of real estate investing. Maximize your confidence in each deal with this first-ever ultimate guide to deal analysis. <em>Real Estate by the Numbers<\/em> makes real estate math easy, and makes real estate success inevitable. <\/p>\n\n\n\n<div id=button-custom-event-block_64138224164cd class='button-custom-event'>\n      <a href=\"https:\/\/store.biggerpockets.com\/products\/real-estate-by-the-numbers?utm_source=blog&#038;utm_medium=marketing_block\" x-on:click=\"window.analytics.track(&#039;Blog Block | Publishing: REBTN Book&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/how-to-calculate-roi-on-a-rental-property&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Get Yours Now<\/a>\n  <\/div>\n\n\n\n<div id=button-custom-event-block_641381f7164cc class='button-custom-event'>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\"lg:w-1\/3 first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/08\/REBN_cover_mockup_01-e1679000020543.png\" alt=\"real estate by the numbers\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/signup\" x-on:click=\"window.analytics.track(&#039;Blog Block | Acquisition | Free Membership Signup&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/how-to-calculate-roi-on-a-rental-property&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Real estate is widely considered the best and more consistent investment around. However, calculating the value of your investment is more challenging than checking your monthly bank statement. Multiple ways [&hellip;]<\/p>\n","protected":false},"author":613625,"featured_media":146696,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4252,7119],"tags":[],"class_list":["post-146603","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deal-analysis","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/146603","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613625"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=146603"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/146603\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/146696"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=146603"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=146603"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=146603"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}