The plan is to buy a townhome for 5 years (getting roommates to help pay); then buy a SFH and rent out the townhome forever. So while its not an investment.... It is.
That calculator is pretty sweet!
Thats cool you had 2 SLC rentals! So clearly you're the person I need to talk to.
While market values may be out of whack with rents... Am I wrong to put into consideration appreciation along with the cash flow? For example; a condo in rose park sells for $150k that could pump $1200 a month in rent. A condo in farmington goes for $200k; but could get $1500 a month. So while farmington (.75%) isn't getting as good of a cash flow than SLC (.8%). Farmington is expected to appreciate by 4.4% (using zillow; I get it isn't perfect, but its something I can go off of), while SLC is getting 2.7%.
Farmington
Rent: $1500 * 12 = $18,000
Appreciation: $200000 * 4.4% = $8,800
($18,000 + $8,800) / $200k = 13.4% ROI
SLC
Rent: $1200 * 12 = $14,400
Appreciation: $150,000 * 2.7% = $4050
($14,400 + $4,050) / $150k = 12.3% ROI
I know I'm missing a shit ton of items like expenses... But isn't appreciation a factor?
Thoughts?