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!