Rent investment calculator

exemplo_rentanalysis

Why to use the habimarket rent calculator?

When you intend To rent a property is to have a return on your investment, mainly cash flow.

This tool will help you to make a decision based on your business inputs ( cost of the prooerty, income, cost of maintenance and taxes). 

What to take into account..

The reselling strategy has many variables to take into acctount. In order to decide if you’re making a good deal remember a few things:

 

Capital to invest

This is the amount that you will pay ( from your own money )for the property including closing cost ( taxes, fees, other legal cost to acquire the property). If you are paying also for rehabing before renting out, it has to be  included in this amount

Maintenance

After a period of time you will need to repair or update a few things. 

A new boiler, repaint, condo repairs, replace a window… Sometimes small things and others big. This has to be taken into consideration as the  rent price charged should acomodate future repairs.. break this costs into a monthly value and see how much it will affect the cash flow

Rent income

it seams a very  straigth foward, but you must take into considerarion vacancies.

Usually, investors forget that there are periods of time where the property is free.. specially between contracts. 

The vacancy can take weeks, months… and it must be included in the anual income.

 

Taxes

It would be good to keep the gross income, but reality is that property investments have taxes to pay.  It may vary if you are investing as a person or as a company. Be aware of the anual percentage that applies into your cenario.

Mortgage

if you are being financed to buy the property or to rehab, it will have a monthly fee to pay. It should not be higher than 50% of your monthly income. This is an amount that you have to pay regardless of how the business is going