Backwards/ Retro Rental Calculator question

2 Replies

Ok. Numbers people, please advise.

I'm working up a retroactive analysis on a deal, mostly to pat myself on the back but maybe also to show to later potential partners. 

In 2012 I purchased a duplex and house hacked until I moved out in year 6.

So the rent, with modest increases in the first 6 years is easy to calculate, but in year 6 it takes a big jump when I started leasing both sides instead of just 1 unit. 

So the question is, what is the best way to calculate the annual income growth as a percentage? The way the calculator is designed, that is a more or less constant rate through the lifetime of the deal, so I'm not sure how to determine that rate.

Any help is appreciated. 

If you are looking backwards you do not need a calculator generally as you just plug in the actual numbers achieved during the period for which are interested. You do not list the calculator you are using or where. I would look at the rates when you started, then compare the rates at the end.  Then look at the %. If you were collecting 1000 and are now collecting 2000 it is a 2000/1000 rate increase (200%) over a course of 6 years. 

Originally posted by @Brian Black :

If you are looking backwards you do not need a calculator generally as you just plug in the actual numbers achieved during the period for which are interested. You do not list the calculator you are using or where. I would look at the rates when you started, then compare the rates at the end.  Then look at the %. If you were collecting 1000 and are now collecting 2000 it is a 2000/1000 rate increase (200%) over a course of 6 years. 

Right, but you can't use that same rate to project forward for the next 20 years.