Target Annual ROI is your desired rate of return at which your downpayment would grow each year over the life of your investment. The Target Annual ROI is different from the calculated annual ROI that AptPrep generates on the website and on the AprPrep Report based on the assumptions you enter. The Target Annual ROI is a percentage the investor picks so that the AptPrep Report might illustrate what are the changes in assumptions required (such as in rent, property appreciation increase, rent growth rate) so that the Targeted Annual ROI and the calculated annual ROI match. Entering a Target Annual ROI will not change or affect the outcome of the report, but it is only used to enhance the analyses illustrated in the sensitivities tables. Common range is 5% and above.
Enter how many years you expect to own the investment property before selling it back to the market. Common range is between 5 and 10 years.
Enter how many years is your mortgage. The number of years can be different from the number of years in the investment period.
Enter your expected income tax rate. Common range is between 28% and 35%.
Enter the percentage at which you expect the property to appreciate each year. Common range is between 1% and 5%.
Enter the percentage you expect the rent to increase each year. Common range is between 0% and 5%.
Enter what percentage of the time the property is expected to be rented each year. Common range is between 96% - 100%. For seasonal rental properties it can be lower.
Enter the monthly rent you expect to receive on your property.
Enter the average percentage you expect your miscellaneous expenses to increase each year. Common range between 0% and 2%.
Enter the average percentage you expect your property tax payments to increase each year. Common range between 0% and 3%.
Enter the average percent you expect your maintenance expenses to increase each year. Common range between 0% and 3%.
Enter your best estimate on additional recurring expenses to operate your property, such as Property Insurance or Management Fee, if applicable. Management fee is between 1% and 3% of monthly rent; insurance $50 and above.
Enter applicable county, city, state and other property tax expenses associated with the property. Common range is between 0.05% and 0.10% of the Property Purchase Price.
Enter common charges and all recurring costs associated with maintaining the property. Common range is between 0.05% and 0.10% of the Property Purchase Price.
Enter the year you purchase the property.
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