ROI calculation - live in before renting

1 Reply


I am becoming familiar with the ROI calculators for investing in buy-and-hold real estate but I'm trying to wrap my mind around the math if I were to purchase a property with the intention to rent it but only after living in it a year or two first. How would that year or two live-in time affect the cash-on-cash return math? Would only the initial cash invested count in the calculations or would the year or two of mortgage payments I assume when I live there also be factored into the equation?

Thanks for your help!


I'm a teacher also. I teach math.  But know little about investing and am trying to learn.  I came across your question.  I think you could pay yourself fair rent and use those numbers.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you