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Real Estate Return on Investment Calculator

May 31, 2012

It's all about the numbers in real estate. This does not mean house or property numbers. Cash flow is king and every great investor knows how much he or she is making on his or her real estate investments. Property investing is one of the most consistent ways that you can earn a residual monthly income regardless of swings in the stock or bond markets. You don't have to be a certified public accountant or financial advisor to get the real scoop on how much a property will earn for you.

You can find out the ROI using this real estate return on investment calculator offered exclusively here at JWB Real Estate Capital. 

 

Data Used to Calculate Real Estate ROI 

1. Purchase Price

2. Down Payment

3. Closing Costs

4. Amount Financed

5. Monthly Fees, Vacancy and Related Expenses

There are variables that you must not forget about when doing a rough ROI for your investment property. Things like annual property taxes, property management fees, federal and local taxes and property insurance. The totals from these expenses will reduce the amount of income that you earn each month.

The goal for any property is to earn more than what is paid out. The average return for what is considered a "good" real estate investment is between 8 and 10 percent. Properties in areas like Jacksonville, Florida have higher rent prices and lower home values. These are 2 of the key ingredients for a larger than average real estate return on your investment. 

By Gregg Cohen

I am a co-founder at JWB Real Estate Capital, and I love to talk about investing in rental properties! You’ll often find me here contributing to our blog and in our Facebook group connecting with the community & sharing insights.

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