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how to calculate rental property roi

1Answers

DeLillian

11/28/2025, 06:57:53 AM

To calculate rental property ROI, divide the annual net profit by the total investment cost, then multiply by 100 to get a percentage. Annual net profit is the total annual rental income minus all annual expenses (like property management, taxes, insurance, maintenance, and mortgage payments). The total investment cost is the sum of the down payment and any other upfront costs, such as closing fees and initial repairs.

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