This page was originally written in English and this is a Google Translation. If you are reading it in another language we apologize beforehand for the many translation mistakes.
In this page we present a simplified version of our analysis model for potential investment properties in the United States.
In this mathematical model we insert all the possible variables for purchase and operation of the property over a project life of 31 years. The reason for such a long scenario is the need to estimate the evolution of the return on investment over the period of payment of the mortgage, plus one year after the loan term.
Our suggestion is that potential investors simulate various scenarios according to their market expectations, thus drawing their own conclusions about the earnings probabilities and possible risks involved.
Instructions for use:
- All fields highlighted in gray are variables that can be changed to simulate different scenarios
- Other fields contain formulas. If you try to change any of them you will receive an error message
- We suggest special attention on the importance of the Down Payment variable (in the Mortgage section). Use 100% to simulate the result paying cash and decrease the amount until you find the ratio that seems most attractive to you in regards to “Cash / Investment” and “Total Return / Investment”
- Finally, keep in mind that this calculator can be an interesting tool also for your investments in other countries as well. Feel free to save this page and return as many times as you like to simulate other rental investment opportunities.
Live long and prosper!!!