I'm looking for a spreadsheet or calculator that can give me the total estimate return on RE Investments after 30 years. I found this one online and I think it's pretty good.
http://www.calculator.net/rental-property-calculator.htmlDo you think it's accurate?
I tested it using the ideal 24% rental yield rule for Rentals, and 50% rule for Expenses. I found the total return is still not as good as the return from an S and P Index Fund
For Example:
Pay cash for $100,000 property,
Rent- $24,000 a year
All Expenses- $12,000 a year. (50% of rent rule)
Rent after all Expenses- $12,000 a year.
Let's assume 3% Appreciation each year for Rent, Expenses, and Sale price, for 30 years.
After 30 years I will have $813,631. I didn't include Taxes on Rents, or Commission on Sales, to keep it simple.
If I put $100,000 into S and P 500 Index, I would have $1,744,940 after 30 years! (Assuming I get 10% compounded each year) If I assume 8% compounded, that would still give me $1,006,265.
$1,744,940 is way higher then $813,631!
Did I calculate something wrong?
Any thoughts?