Germantown, MD · Member since 2014 · 8 posts · 3 votes
We are in the process of buying a new home and want to convert our current one into a rental property. The BP Rental Property Calculator is a great resource when figuring out whether to purchase a potential property or not.
What is the best way to use the Rental Calculator on a property that you already own and have been living in for some time?
Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
10y
Add in 6% for property management, use the market rent that you find on Zillow, or call an actual property manager for local expertise. They can give you an estimate without any obligation to use them.
I personally do not count on appreciation, so I run the numbers with very low or no appreciation, but I do put in numbers for a general increase in expenses due to inflation. Future inflation is an assumption, as is future anything. You can put in your actual numbers for interest rate and down payment amount.
If you turn it into a rental, assuming you don't have any rentals already, then BP becomes a "business expense" as part of your education in your new investment. Pay for the Pro membership, deduct it on next year's taxes as a business expense. Play with the calculator to your heart's content! Run it high, run it low. Be safe. Be aggressive. Think about the results.