How To Calculate The Numbers, Net Yield And ROI On A Rental Property | Real Estate Investing Tips

How To Calculate The Numbers, Net Yield And ROI On A Rental Property | Real Estate Investing – A step by step guide to help you calculate the numbers on an investment property, so you can be sure that you are looking to buy a good investment.

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Calculations for Property Investment Purchases

http://www.moneysavingexpert.com/mortgages/mortgage-rate-calculator#results

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Andy Walker is the creator of monoperty.com, where he blogs online as a property investor and landlord, sharing what works, and what doesn’t, to help you start or expand your property portfolio. Check out Andy’s informative videos and tips and join the conversation. If you have any questions, please leave a comment in one of the videos or head over to monoperty.com/ask.

How To Calculate The Numbers, Net Yield And ROI On A Rental Property | Real Estate Investing

0:00 The difference between an asset and a liability.

1:32 Gross yield

2:30 4 Figures you need to know

3:05 Annual rental income

3:24 Mortgage payment

4:43 Insurance

4:50 Property management company

5:10 Repairs

5:34 Voids

6:32 Net yield

7:08 Return on investment

Other Videos To Watch:

How To Find The Best Mortgage For Your Investment Property
https://youtu.be/7S2OpFw0u-U

A Guide To Researching Investment Properties
https://youtu.be/8iULJRhNfvQ

A Checklist For Viewing Investment Properties
https://youtu.be/DTBSMSkih2U

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How To Calculate The Numbers, Net Yield And ROI On A Rental Property | Real Estate Investing

19 thoughts on “How To Calculate The Numbers, Net Yield And ROI On A Rental Property | Real Estate Investing Tips”

  1. QUESTION: what if you are releasing equity on your home to fund the b2l deposit. This will cause your monthly mortgage payments to rise do you include that in the total mortgage outgoings instead of just the b2l mortgage?

  2. Hi Andy, thanks very much for the video. As a result I've made modifications to my calculations 🙂 One question though as you've elected to add legal fees into the equation, as it's money coming out of your pocket; which I get totally, why have items such as stamp duty and possible refurb costs been omitted? Cheers.

  3. Hi, thanks for sharing the video, you make it very simple to understand, helps me a lot. Im very interested in the topic (as I'm an real estate student). Could you tell me again from where do you get the 23.250 in the (min. 7:17) you said the money you put in the property? I don't get it?

  4. hello there is an investment plan that i would like to invest at. could i have am email so i can have your professional expertise in help

  5. What if I have another small loan for 7 years that I used in order to get the investment loan and has to pay 2 mortgages? In such case because the small loan is only for 7 years the house is not earning any money but will be after those 7 years when only 1 mortgage remains

  6. Thank you for your invaluable and detailed help Andrew. Do you have any spreadsheets as requested in comment below yet ? would be so helpful . New to all and Excel . Help would be appreciated . So kind of you to post these blogs and share your experience and expertise .

  7. hi there this is very good, Wouldn't council tax also have to be included tho ? and could you do one on flats please i.e service charge and ground rent

  8. Thanks for the video. Very detailed… it would be nice to have a spreadsheet with all those numbers in and basically just fill in the blank! 🙂

  9. Another good video…very informative. I will certainly review the figures a few times to ensure the numbers have sunk in!

  10. Hey Andy! Great video! Thanks for sharing lots of useful tips! I was wondering where does the figure of £23,250 come from? Was that from the precious figure added up? I seems to miss that point. Thanks!

  11. Nice clear explanation of the costs and income calculations needed. I'm assuming in this that the tenant is responsible for all electricity/water/taxes etc?

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