Updated over 13 years ago on . Most recent reply
Help me clarify some numbers ...
Hello, this is my first post on this forum. I'm a college student very interested in real estate investment. I was reading an article lately and then I started this calculation. It is about the acquisition of a rental property then sold 5 years later :
(Numbers are simplified)
Acquisition price : $229,000 (20% down : $45,800)
30 yr fixed rate mortgage + taxes : $1000/mth
rent estimated : $1600/mth
Sale after 5 years : $260,000
Capital Gain : $31,000
Total Net Income : $36,000
Portion of the mortgage paid : $60,000
My question is about the total gain : is it 31k+36k+60k = 127k or is it just 31k+36k = 67k ?!