What is ROI?
Here are some strategies you can use to calculate the ROI on your property.
The convenient ROI calculation:it is expressed as a percentage, you can consider the effectiveness or profitability of one of a form funding selections.
Capitalization charge (or cap rate):it is a monetary metric used via buyers to calculate what the charge of return from an funding is based totally on the internet running profits the property presently or have to produce and the property fee or price.
Cash-on-cash return: Cash-on-cash return is a fee of return ratio that calculates the whole money earned on the complete money invested.
This is how you can calculate the ROI on a condominium property
The easy ROI calculation : ROI = (Annual Rental Income – Annual Operating Costs) / Mortgage Value
Capitalization price (or cap rate): Cap Rate = Net Operating Income / Purchase Price × 100%
Cash-on-cash return: Cash-on-Cash Return = (Annual Cash Flow / Total Cash Invested) × 100%