Real Estate | Tools & Calculators - Should you be a landlord?

Should you be a landlord?

Buying a house or duplex to rent isn't at all like investing in stocks or mutual funds. This is hands-on work that starts with finding a property capable of generating enough rental income to make the transaction pay off. See if the numbers work. This worksheet will help you project your income, expenses and tax benefits over five years. Compare what you expect to receive in rent with what you’ll pay out to keep the property rented and in good repair.

HOUSE EXPENSES and TAX BASIS
1. Mortgage balance	$
2. Interest rate	%
3. Loan term (years remaining)
4. Building value at purchase (plus capital improvements )	$
5. Modified adjusted gross income?	$
6. Annual property tax?	$
7. Do you plan to actively manage the property?
8. Include private mortgage insurance (PMI) in mortgage estimate (typically applies when owner has less than 20% equity stake in the property)

INFLATION - used as yearly % increase in rent, property tax, and insurance
Estimated inflation rate per year	%

INCOME - how much would you charge per month for
1. Rent	$
Months rented per year?
2. Utilities	$
3. Parking	$
4. Other	$

EXPENSES
1. Homeowners insurance per year	$
2. Advertising/real estate agent costs per year	$
3. Maintenance and repairs per month	$
4. Utilities per month	$
5. Management fees per month	$
6. Other monthly expenses	$