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how to calculate return on investment for rental property

1Answers
ODylan
11/28/2025, 06:57:55 AM

To calculate ROI on a rental property, subtract the annual operating expenses from the total yearly rental income, then divide the result by the property's purchase price or mortgage balance. This provides a basic return estimate, while additional metrics like cash-on-cash return or cap rate can give a more detailed view of potential investment performance.

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