Here is my calculation

Assume 75% mortgage loan ($210k) 30 years at 5.25% ($1160/month), $6000 tax (500/month), $1200 insurance (100/month).

Other costs: vacancy 10% rent, management/fixup, 10% rent $2000*20% = $240

monthly fixed cost: 1160+500+100 = 1760
income (less other cost) 2000 - 240 = 1760

with 75% loan, break even. With 80% loan, negative cash flow.

Return for the first year:
Principle paid: <$3000
initial down pay: $70000
return 3000/70000 = 4.2%

ps. If you invested in MXIM (tech stock), you will get 4.2% divident easily. no hassle, and get money back any time you want.

所有跟帖： 

• 回复：Here is my calculation -bluesky948- ♀ (407 bytes) () 12/11/2009 postreply 19:40:29

• It will be your call -planotx- ♂ (629 bytes) () 12/11/2009 postreply 23:51:46

• 回复：Here is my calculation -greenfieldcn- ♂ (72 bytes) () 12/11/2009 postreply 23:41:08

• I just make some assumptions without actual data -planotx- ♂ (151 bytes) () 12/11/2009 postreply 23:58:07