Before diving into any investment, you must consider your return on investment (ROI). During the early stages of the home buying process, you must at least have a rough estimate of your return on investment (ROI).
You can calculate your ROI by finding the property’s net annual income. The net annual income is the rental income that is left after you have paid for all the expenses. These expenses are composed of the taxes, monthly mortgage, insurance, property management fees, repairs, vacancy period, and any other utilities that you pay for as a landlord.
By calculating your ROI, you can determine if the rental property is a good investment or not.