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Updated over 4 years ago on . Most recent reply
Calculating ROI (specific scenario)
Can someone help me with how to calculate ROI in this scenario:
Purchased primary residence for $320k with $60k down.
House appraises 7 years later at $650k . I Cash out refi with a $420k new loan. Remaining $230k equity kept in the house.
Now I decide to move out and rent it: Including all cash flow, appreciation, house paydown, I make $32k in year one. What is my ROI?
I'm struggling with what number determines my "initial investment" once it's been turned into a rental. Is it the original 60k? Is it the remaining 230k equity?
Purchased primary residence for $320k with $60k down.
House appraises 7 years later at $650k . I Cash out refi with a $420k new loan. Remaining $230k equity kept in the house.
Now I decide to move out and rent it: Including all cash flow, appreciation, house paydown, I make $32k in year one. What is my ROI?
I'm struggling with what number determines my "initial investment" once it's been turned into a rental. Is it the original 60k? Is it the remaining 230k equity?