Author Topic: Playing with rental property calculator  (Read 959 times)

Alim Nassor

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Playing with rental property calculator
« on: February 25, 2017, 04:32:11 AM »
I saw the thread about getting a first rental property and arebelspy linked to the rental property calculator.  Earlier this month another Mustachian dumped all over my rental property numbers, so I ran numbers on a couple of my typical houses, but I'm not sure what the numbers should be for it to be considered a desirable rental property,

So, if arebelspy or someone else could jump in and evaluate these numbers and tell me what you think, I'd appreciate it.

1st house.
 Internal Rate of Return (IRR): 24.65% per year for the 30 years invested.
Return on Cash Invested: 3,048.45% for the total of 30 years invested.
Capitalization Rate: 16.00%

2nd House
Internal Rate of Return (IRR): 44.91% per year for the 30 years invested.
Return on Cash Invested: 4,350.11% for the total of 30 years invested.
Capitalization Rate: 22.14%

3rd House
Internal Rate of Return (IRR): 26.95% per year for the 30 years invested.
Return on Cash Invested: 3,469.18% for the total of 30 years invested.
Capitalization Rate: 16.36%

I have 9 houses in all, these 3 are what I'd consider a fair representation of the low, mid and high end of the spectrum.  I'm not going to pretend that I understand all the numbers the calculator returns, but I'm happy so far. 

Would any of you more seasoned investors care to give your opinion?