Question 1

How do I calculate ROI on a rental property?

Accepted Answer

ROI on a rental property is calculated by dividing your annual net income (rent minus all expenses like mortgage, taxes, insurance, and maintenance) by your total investment (down payment plus closing costs). ROIInvest automates this with a free calculator that includes mortgage amortization, expense tracking, and multi-year projections.

Question 2

What is a good ROI for real estate investment?

Accepted Answer

A good ROI for rental property typically ranges from 8% to 12% annually, though this varies by market, property type, and financing. Cash-on-cash returns above 8% are generally considered strong. Use ROIInvest's scenario modeling to stress-test different market conditions.

Question 3

How do I compare investment properties?

Accepted Answer

Compare investment properties by analyzing ROI, cap rate, cash flow, and total expenses side by side. ROIInvest's comparison tool lets you add multiple properties with different financing, expenses, and rent assumptions to find the best deal.

Question 4

What expenses should I include in a rental property calculation?

Accepted Answer

Include mortgage payments, property taxes, insurance, maintenance (typically 1-2% of property value), property management fees, HOA dues, vacancy allowance, and utilities if applicable. ROIInvest lets you add custom expense categories for accurate analysis.