Investment Property: What's Inside

Keep reading to learn more about what can be found inside the Investment Property report.

1. At the top of the report is the total monthly cash flow in year 1 and the cumulative cash flow through 9 years of home ownership.
   • The duration of home ownership can be edited in the Yrs Before Selling field, found in the Home Ownership tab (Maximum of 10 years).
2. The Cumulative Cash on Cash Return measures the annual cashflow over time as a percentage of the initial outlays (down payment, closing costs, renovation costs).
3. Estimated Annual Cash Flow lists the expected rental income, expenses, total cash flow and cash on cash return for each year. The expenses are broken down in principal and interest, property taxes and insurance, maintenance and repairs, HOA and property management fees.
4. The graph below is.a visual representation of the estimated annual cash flow over time.

5. The report highlights the total Appreciation and Amortization Gains, followed the Total Return on investment. This breakdown compares the gross revenue (rental income + appreciation) to the sum of all expenses to calculate the total profit. It then considers this profit as a percentage of the amount invested (down payment + renovation costs) to calculate the return on investment.
6. The final chart illustrates the annual total return on investment through each year of home ownership.