ROI calculation over 5 years

[Daniel Peavey]

Hypothetical question?

1. Purchase price 40k

2. 20 % down or 8 k down payment

3. Taxes 1k

4. Insurance 1k

5. Rent 750 month

6. 9k total revenue

7. Net is 7k

8. 7k / 9k = 78 % ROI first year

Question: how do I figure ROI for 5 years

If hypothetically, my principle reduces 1 k per year, and I keep rent at 750 per year for 5 years

Does my ROI increase, with the reduction of principal?

If I raised rent to 900 per month, does this increase my ROI on initial 8k

Also, if capital costs were 10k, does that effect original ROI? Additive, to the original 8k down payment??

Thanks