A friend needs some help with numbers I bought an apartment 4 years ago and sold it a total of all uploaded…
A company needs some help with numbers
I bought an apartment about 4 years ago
And I sold it
Total All Home Costs Including Renovation Mortgage Payments That I Paid Over The Period I Earned 780395
I sold the apartment at 750000
And I've had a tenant for the last 3 apartment that 78000 has put in
And the money I bought from the bank what I took out of the mortgage
Is 34127
Total 862127
Looks like there's a profit for 81732
Am I right and if so how does that translate into yield
Just to know how the formula works I know that 20000 a year is not much
I would love for comments and explanations
What I did was calculate costs alone
And I thought revenue alone
And I just divided income less expenses =
I think you should divide it up a little differently or formulate your question differently.
How much the property cost
How much the renovation cost
How long it took to renovate and populate the property (or how long it wasn't rented from the time of purchase).
Some of the customs was leased
How long was he leased
How much expense you had.
How much mortgage to take
and so
Break the wave - put numbers and see how many answers you get?
You put in 78 thousand from the tenant but on the other hand you say that you got down from the mortgage 34 thousand but who paid it? are you? That means there were more expenses on the property, and if you used the rental money, then you did not earn 34 and 78 from the renter, but it is conflicting and you did not calculate financing expenses in my opinion you are somewhere close to Brake Ivan
Irr
Taking into account comparisons to investment alternatives and the appropriate risk premium should be added (investment in Israel / vis-à-vis overseas, for example)
here. I hope it will help
https://youtu.be/NWa1QC5sZrI
To calculate yield numbers are how much you paid for a home in Kenya plus the initial renovation if it was, that's the investment fund. For which you received a return on the balance of your income, after deduction of expenses.
That means for calculating an average annual return for this transaction or a general return you need the following data:
A. Investment Entry Price
B. The rental
C. the expenses
D. The selling price
E. Project years
The formula for calculating a general return will be
(B-C + (DA)) * 100 / A
And to calculate an annual average
(B-C + (DA) / E * 100 / A
You are confused with the shekels but your profit is about 3.5% per year. You better leave the money in the country ..
It is impossible to calculate a yield like this because even when a few is necessary, to calculate a yield you have an XIRR function in Excel.
According to your explanation of the deal about 14000 about?