Real Estate Agent · Charlotte, NC · Member since 2020 · 115 posts · 69 votes
1y
Hey Shan! To calculate I use MLS data and take the zip codes AR and divide it by the avg purchase price for that month for a quick ROI %. This is by no means the end all be all/guarantee anything. This formula helped me when I was initially combing the MLS for listings- a way to go from 10000 listings to more focused search. I'm currently running higher estimated interest rate to remain conservative on my calculators (under promise over deliver) with a 75% LTV. When looking in the zip codes with higher ROI (or lower RTP) my calculators have been looking better regarding cash flow