stevent2323
New member
I'm having trouble with these KPIs on a potential rental property.
This does not account for paying for a property manager.
I'm reading mixed things online. One source said the property should be paid off in 6 years and 7 months. Another said the property should be paid off in 8 years. My property would be paid of in 11 years.
Online it stated that a good cash flow for 100K property is $100/month+. My cash flow is $353/month (for first year then it increases).
I'm struggling to understand the financial KPIs and would like some help.
The post won't let me post pictures but here is the data from an online calculator.
The purchase price is $100K and I expect $1300-1400/month for the property in rent. That is above the 1% rule.
Year Annual Income Mortgage Expenses Cash Flow Cash on Cash Return Equity Accumulated If Sold at Year End
Cash to Receive Return (IRR)
Begin -$23,000
1. $18,000 $8,101 $5,664 $4,235 18.41% $26,393 $18,153 -2.66%
2. $18,540 $8,101 $5,834 $4,605 20.02% $33,086 $24,599 22.26%
3. $19,096 $8,101 $6,009 $4,986 21.68% $40,093 $31,352 28.95%
4. $19,669 $8,101 $6,189 $5,379 23.39% $47,432 $38,428 31.02%
5. $20,259 $8,101 $6,375 $5,783 25.14% $55,120 $45,846 31.51%
6. $20,867 $8,101 $6,566 $6,200 26.96% $63,175 $53,623 31.39%
7. $21,493 $8,101 $6,763 $6,629 28.82% $71,617 $61,778 31.02%
8. $22,138 $8,101 $6,966 $7,071 30.74% $80,465 $70,331 30.57%
9. $22,802 $8,101 $7,175 $7,526 32.72% $89,743 $79,305 30.09%
10. $23,486 $8,101 $7,390 $7,995 34.76% $99,472 $88,721 29.63%
11. $24,190 $8,101 $7,612 $8,478 36.86% $109,678 $98,604 29.19%
12. $24,916 $8,101 $7,840 $8,975 39.02% $120,385 $108,979 28.79%
13. $25,664 $8,101 $8,076 $9,487 41.25% $131,622 $119,873 28.43%
14. $26,434 $8,101 $8,318 $10,015 43.54% $143,415 $131,314 28.10%
15. $27,227 $8,101 $8,567 $10,558 45.91% $155,797 $143,333 27.80%
16. $28,043 $0 $8,824 $19,219 83.56% $160,471 $147,633 27.53%
17. $28,885 $0 $9,089 $19,796 86.07% $165,285 $152,062 27.31%
18. $29,751 $0 $9,362 $20,390 88.65% $170,243 $156,624 27.13%
19. $30,644 $0 $9,643 $21,001 91.31% $175,351 $161,323 26.99%
20. $31,563 $0 $9,932 $187,793 94.05% $180,611 $166,162 26.87%
Total $483,667 $121,515 $152,194 $353,120 1,535.30%
This does not account for paying for a property manager.
I'm reading mixed things online. One source said the property should be paid off in 6 years and 7 months. Another said the property should be paid off in 8 years. My property would be paid of in 11 years.
Online it stated that a good cash flow for 100K property is $100/month+. My cash flow is $353/month (for first year then it increases).
I'm struggling to understand the financial KPIs and would like some help.
The post won't let me post pictures but here is the data from an online calculator.
The purchase price is $100K and I expect $1300-1400/month for the property in rent. That is above the 1% rule.
Year Annual Income Mortgage Expenses Cash Flow Cash on Cash Return Equity Accumulated If Sold at Year End
Cash to Receive Return (IRR)
Begin -$23,000
1. $18,000 $8,101 $5,664 $4,235 18.41% $26,393 $18,153 -2.66%
2. $18,540 $8,101 $5,834 $4,605 20.02% $33,086 $24,599 22.26%
3. $19,096 $8,101 $6,009 $4,986 21.68% $40,093 $31,352 28.95%
4. $19,669 $8,101 $6,189 $5,379 23.39% $47,432 $38,428 31.02%
5. $20,259 $8,101 $6,375 $5,783 25.14% $55,120 $45,846 31.51%
6. $20,867 $8,101 $6,566 $6,200 26.96% $63,175 $53,623 31.39%
7. $21,493 $8,101 $6,763 $6,629 28.82% $71,617 $61,778 31.02%
8. $22,138 $8,101 $6,966 $7,071 30.74% $80,465 $70,331 30.57%
9. $22,802 $8,101 $7,175 $7,526 32.72% $89,743 $79,305 30.09%
10. $23,486 $8,101 $7,390 $7,995 34.76% $99,472 $88,721 29.63%
11. $24,190 $8,101 $7,612 $8,478 36.86% $109,678 $98,604 29.19%
12. $24,916 $8,101 $7,840 $8,975 39.02% $120,385 $108,979 28.79%
13. $25,664 $8,101 $8,076 $9,487 41.25% $131,622 $119,873 28.43%
14. $26,434 $8,101 $8,318 $10,015 43.54% $143,415 $131,314 28.10%
15. $27,227 $8,101 $8,567 $10,558 45.91% $155,797 $143,333 27.80%
16. $28,043 $0 $8,824 $19,219 83.56% $160,471 $147,633 27.53%
17. $28,885 $0 $9,089 $19,796 86.07% $165,285 $152,062 27.31%
18. $29,751 $0 $9,362 $20,390 88.65% $170,243 $156,624 27.13%
19. $30,644 $0 $9,643 $21,001 91.31% $175,351 $161,323 26.99%
20. $31,563 $0 $9,932 $187,793 94.05% $180,611 $166,162 26.87%
Total $483,667 $121,515 $152,194 $353,120 1,535.30%