DelphiFAQ Home Search:
General :: Outside the Cube :: Finances :: Real Estate
About purchasing and investing in Real Estate. From mobile homes, studios to single family residences.


This list is sorted by recent document popularity (not total page views).
New documents will first appear at the bottom.

Only the 40 most recently viewed articles are shown.
You can see the full list here.

Featured Article

How much should I pay for a rental property?


I am about to buy an investment property. I want to get a return of 5% cash on my cash investment. How can I determine the maximum price that I should pay, given that I know rental income and operating expenses?


Use the calculator below, simply put in your numbers.

Note: The logic behind the formulas used is described here:
Purchase Price
% down payment
Gross Rent (per month)
Holding cost (tax, insurance, management - per month)
Loan interest %
Principal %
(1.5 for 30yr amortization, 0 for IO loan)
Desired cash on cash return (%)
Net Operating Income (NOI) = Rent - Holding cost
Loan Payment monthly
Annual Debt Service/Loan Principal Amount = Loan Constant
Derived Cap Rate:
(LTV debt ratio x mortgage constant) + (LTV equity ratio x equity constant)
NOI/Cap Rate = Maximum Purchase Price

Generated 12:01:12 on Apr 19, 2019