rent - cost (loan,tax, mgmt fee, insurance) / total cash invested. It is a rough estimation.
For example
| 270000 | ||
| Rent | $ 2,650.00 | 180000 |
| 4.75% | ||
| Loan | $ 938.97 | 90000 |
| pool cost | ||
| hoa | ||
| insurance | $ 40.00 | |
| tax | $ 281.25 | |
| mgr fee | $ 159.00 | |
| cost | $ 1,419.22 | |
| repair | 15000 | |
| Profit | $ 1,230.78 | |
| Net return | 14.07% | . |
| Gross | 15.88% |