Rate Of Return (Yield)

The rate of return is the measurement of a an investment's performance over time. Determine the rate of return of the investment property you already own or you are thinking buying. Answer the questions listed below. Fill in black fields only and the red fields will be computed for you.  You must fill all the boxes, if the value is 0 enter 0. Click "Calculate" button when you are finished.

Property
Purchase Price: $  Value of the property
Mortgage Amount: $ Existing or required
Mortgage Monthly Payment: $ Current or calculated in mortgage calculator

Downpayment (Equity):

$ Purchase Price less Mortgage Amount

Income and Expenses

 Monthly Annually
Rental Monthly Income: $ Total rental
Other Monthly Rental Income: $ Coin laundry, parking, etc.
Vacancy Rate (%): % Percentage of lost income due to vacany (Example 5%)

Effective Gross Rental Income:

 $
Other Income: $  Not affected by vacany (long term fixed contracts, etc.)

Gross Operating Income:

 $
Operating Expenses
Real Estate Taxes Expense $
Property Insurance Expense $
Heating Expense (gas, oil) $  If included in rent
Hydro Expense $  If included in rent
Water Expense $  If included in rent
Management Expense $
Maintenance Expense $
Other Expenses $  Equipment rental, advertising, garbage removal, supplies,
Total Operating Expenses $  Total of operating expenses
Net Operating Income $  Gross Operating Income less Operating Expenses
Mortgage Cost $
Cash Flow Before Taxes $  Net Operating Income less Annual Mortgage Cost
Capitalization Rate(%)   Ratio of Net Operating Income to Purchase Price
Cash On Cash Return(%)   Ratio of Cash Flow to Downpayment
Gross Rent Multiplier   Ratio of Purchase Price to Gross Rental Income

Yields computed here for are on a before tax basis and do not include capital additions, reserve funds and/or leasing commissions.

Contact Jan Gizicki to learn more about what properties are available for real estate investors like you.