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Posted over 4 years ago

How to Calculate Rent to Value (At Purchase)

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Rent to Value (At Purchase) – Measures the monthly gross income to the purchase price. The higher the rent to value ratio, better the investment.


   Gross Income
÷ Purchase Price
------------------------------
= Rent to Value (At Purchase)


        $22,400
÷ $1,800,000
-------------------
= 1.24%



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