Closing Credits and the Bigger Pockets Rental Calulator

[Mark Urich]

Hi everyone,

I have been using the BP calculator to evaluate deals which has been great. I closed on a rental yesterday and wanted to update my report.

In the closing documents I received credits for rent, property taxes, and the renters security deposit. How should I take this into account to calculate an accurate Cash on Cash return using the BP rental calculator? I purchased the property with cash.

The selling price was $134,000

Closing Costs $1,283

Security Deposit $1,500

Rent Credit: $4,504.15

Yearly rent: $11,250 ($937.50 monthly) in a college town therefore rent is paid upfront each semester.

Thanks for your help!

Mark