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Josue Diaz
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Turning a primary residence into a rental property

Josue Diaz
Posted

I bought a home ~10 years ago (estimated price back then $300K) and put a down payment of $20K. In 2023 I moved out of state and kept the home as a rental property.  Current estimated home price is $500K. How do I calculate my cash on cash return? what should be my investment number/denominator? 

Is it the $20K I put 10 years ago, is it an estimated 20% of current cost (~$100K), or is it $0?