AWARDED REMAX 2010 ROOKIE OF THE YEAR
Fraser Valley Real Estate, Ranj Takhar RealtorFraser Valley Real Estate, Ranj Takhar Realtor
Fraser Valley Real Estate, Ranj Takhar Realtor


Revenue Property Example

Purchase price: $ 379,900
Down payment: $ 100,000
Mortgage amount: $ 279,900
CMHC:  $ 0
Property transfer tax: $ 5580
Improvement expense: $ 10,000
Total investment: $ 115,580
Monthly mortgage payment:  $1065
Monthly property taxes: $370
Total monthly expenses: $1435
Monthly rental income: $1700
Monthly cash flow: $265
Annual cash flow:  $3180
Conservative market increase: 1.5% on $379,900 = $5699
Return on Investment: $5699 + $3180 = $8879
Actual ROI on investment: $8879 / $115,580 = 7.7% ROI
   
Variable:  
What if market increased by: 2.5%
CMI 2.5%:  $9475 + ($3180) = $12,655 / $115,580 = 10.9% ROI