Calculating ROI

[Sharon Hernandez]

Hi! I would like to hear your opinions about how to most accurately calculate your ROI and how you decide if a deal is good or not. I do an average between the median of comps from info in Totalview, zillow, realtor.com,eppraisal; and apply 10/10/10 rule. How do you guys do ir? Is there any software that actually helps? Thanks for the info!

[Rosston Smith]

ROI is the gross annual rents divided by the total amount you put unto the property (down payment, costs, expenses) then converted to a percentage.

Ex

100k property, 50k repairs, 150k total with 20k annual rents. ROI = 20k÷150k = 13.3%