Updated almost 8 years ago on . Most recent reply
Rental Property Analysis
I am just starting out and have been doing my research on rental properties. I am getting ready to finally take the plunge and rent the place I am currently living in. But, I want to see if the numbers make sense to rent it or to rent out the new property I am looking to buy.
The first property is paid off and I am using the Four Square Rental Property Analysis pdf. that is listed on the website to get a quick idea on what my Cash on Cash Return% would be. I have filled everything out, but I am confused with the 4th square.(Cash on Cash return) Since I own the property and currently have no mortgage, down payment, rehab budge, etc.. Do I leave all of those blank?
If I leave those blank. Then how do finish calculating the Cash on Cash Return% if I cannot come up with a total investment #?
Thank you for the help! I am probably over thinking this.