BRIC Investment Property Analyzer

The BRIC Investment Property Analyzer will take the complex work out of evaluating the return on investment for any residential property investment. Just adjust the sliders as purchase price, costs, rental occupancy, interest rate, property and tax rate of any investment property and get back the expected monthly return on your cash invested. Use this tool to evaluate potential investment property options. This calculator is easy to use but can also be fine-tuned using option inputs to match your specific situation or any local variations.

Rental Property Monthly ROI $8,047 per month
Buying is better, even if you could rent for free.
Your estimated monthly
return on investment is...
Enjoy the property
as it is not profitable.
$8,047
PER
MONTH
Home Costs after 20 years
Initial costs
-$49,920
Recurring costs
-$206,691
Net proceeds
$81,492
Sub Total
-$175,119
Rental Return after 20 years
Gross Rental Income
$2,635,185
Property Management Fees
-$528,789
Sub Total
$2,106,395
Grand Total
$1,931,276
41.04%
ANNUAL
ROI
How to Read the Charts Charts that are relatively flat indicate factors that are not particularly important to the outcome. Conversely, the factors that have steep slopes have a large impact.
Purchase Price
A very important factor, but not the only one. Our ROI estimate will improve as you enter more details below.
MONTHLY
ROI

How Long Do You Plan to Own?
Holding your property longer allows for better returns as the upfront fees are spread out over many years, rents go up, and property values increase.
ROI
What Are Your Property Management Details?
A great property manager is the key to success for marketing, maintenance, and managing renters.
ROI
What Does the Future Hold?
How much home prices, rents and stock prices change can have a large impact on your outcome. Unfortunately, these are some of the hardest things to predict. If you choose to rent instead of buying, the calculator assumes that youll spend your would-be down payment on stocks or another investment.
ROI
Taxes
Property taxes and mortgage-interest costs are significant but also deductible. The higher your marginal tax rate is, the bigger the deduction.
How do you file your taxes: ?
The first $250,000 of profit from the sale of your home is excluded from taxation. The exclusion is $500,000 if you file jointly with a spouse. See IRS Topic 701 for more information.
ROI
Closing Costs
Youll have to pay various fees when you buy your investment property, as well as when you sell it.
ROI
Maintenance and Fees
Owning a home comes with a variety of expenses that renters do not directly pay.
ROI
Methodology

The calculator keeps a running tally of the most common expenses of owning and property management fees. The calculator assumes that the profit you would have made would be taxed as long-term capital gains and adjusts the bottom line accordingly. The calculator tabulates property management costs costs for all parts of the buying and renting situations. All figures are in current dollars.

Buying

Initial costs are the costs you incur when you go to the closing for the home you are purchasing. This includes the down payment and other fees.

Recurring costs are expenses you will have to pay monthly or yearly in owning your home. These include mortgage payments, condo fees (or other community living fees), maintenance and renovation costs, property taxes and homeowners insurance. Property taxes, the interest part of the mortgage payment and, in some cases, a portion of the common charges are tax deductible. The resulting tax savings is accounted for in each items totals. The mortgage payment amount increases each year for the term of the loan because the tax credit shrinks each year as the interest portion of the payments becomes smaller.

Net proceeds is the amount of money you receive from the sale of your home minus the closing costs, which includes the brokers commission and other fees, the remaining principal balance that you pay to your mortgage bank and any tax you have to pay on profit that exceeds your capital gains exclusion. If your total is positive, it means you have done very well: You made enough of a profit that it covered not only the cost of your home, but also all of your recurring expenses.

Rental Opportunity

Gross Rental Income is the amount of money you will receive from the estimated occupancy rate multiplied by the daily rental rate compounded yearly with the rent growth rate.

Property Management Fees are the expenses you will have to pay to market your home, maintain it, and manage renters.

Grand Total

Grand Total is the sum of the net income from selling the property plus then net income from renting it out over the life of the investment.