Turning my house into a rental. How do i calc cost for ROI?
I'm very new to learning about real estate, and have some questions. I'll have more after this but my other questions could change based on the answers i get. I'll admit, they may be stupid, it scares me enough that i want a very detailed introduction book that tells me everything to do. I know that it won't happen and would be impossible as we are all different.
Anyway, I bought my house 6 years ago and got a really good deal. Now, having learned about real estate, I really want to put it up for rent. I have probably put $12,000 into it since living here. How would you this calculate the return on investment when the time comes to rent it out? Would you use what i spent over the years in mortgage payments? Would you add cost to repairs that I've done? Or would you simply say that on the day i move out and make it a rental property, then all repairs/costs get counted in my calculations?