I just posted a calculator over on the FilePlace under Tools in BiggerPockets. I thought this might be helpful to those getting started in rental home investing. It looks at how many rental properties, and how much rental income, is generated if you continue reinvesting the your cash flow. It looks at these numbers over a 30 year period. I originally developed it when I was looking at turnkey investing. You can input the ROI, initial cash investment, out of pocket cash invested each year, and the cost of the rental properties. It showed me how quickly my cash flow could grow each year by continuing to reinvest my profits, and some additional cash from my W2 job, each year. The file is named "Rental Income Calculator" if you'd like to download it. I've included a screen shot of the calculator below. Let me know if you have any questions on using it.
Albert Einstein said "Compound Interest was the greatest invention of the 20th century". What he said after that was more important. "Those that understand it, will live off of those that don't".
Reinvesting cash flow is and example of it...but a slow one. Flipping and reinvesting your profit is a steroid example of it.
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