Recouping Initial Investment

2 Replies

Is there a basic calculation for the time it take to recoup the initial outlay when purchasing a rental property...for example:

If I buy a SFH at $100,000 with a 25% down payment and $10,000 in costs to ready for a tenant, how long does it take to recoup the initial outlay?

And what about mortgage vs. positive cash flow...say the mortgage payment on the purchase is $800/mo. and the rent is $1,300/mo....nowhere near the 2% rule....and does the fact that the tenant is building equity in the property matter?...or appreciation? 

Medium grey red iconBrandon Sturgill, Hypothetical Insight, LLC. | [email protected] | 614‑379‑2017 | http://www.InvestHypothetical.com

regarding the first question... you almmost have it. what's your monthly left over cash? let's say it's 325. you take 25k (25% of 100k) and add 10k for rehab = 35k.

then take 35k/325 = 107 months (almost 9 yrs)

second question.. go to "resources" on top. go to "fileplace", get jscott's spreadsheet. it has what you need.

Originally posted by @George P.:

regarding the first question... you almmost have it. what's your monthly left over cash? let's say it's 325. you take 25k (25% of 100k) and add 10k for rehab = 35k.

then take 35k/325 = 107 months (almost 9 yrs)

second question.. go to "resources" on top. go to "fileplace", get jscott's spreadsheet. it has what you need.

 George, much appreciated.

Medium grey red iconBrandon Sturgill, Hypothetical Insight, LLC. | [email protected] | 614‑379‑2017 | http://www.InvestHypothetical.com