RENTAL HOME CASE STUDIES
Below are examples of properties recently purchased and leased by our clients. Total Return on Investment (ROI) rate is based on 25% down payment, 4.5% loan rate on a 30 year term, 2% annual appreciation, and 5% vacancy.
SEATTLE HOUSE
Purchase Price: $445,000 | Leased Price: $2,500 ROI: 11%
REDMOND HOUSE
Purchase Price: $345,000 | Leased Price: $1,795 ROI: 9.58%
EDMONDS HOUSE
Purchase Price: $245,000 | Leased Price: $1,700 | ROI: 10.9%
KIRKLAND TOWNHOME
Purchase Price: $227,500 | Leased Price: $1,450 ROI: 7.41%
ROI BREAKDOWN
While researching investment properties, your broker can help you determine the ROI on each property. Having reviewed 1000+ properties that we currently manage, we have developed the following tools for determining realistic property maintenance and management costs.
REPAIRS & MAINTENANCE
CONDO/MULTI FAMILY: HOUSE/TOWNHOUSE:
4.16% of Gross Annual Rent 6.78% of Gross Annual Rent
EXAMPLE:
RENTAL AMOUNT : $1,800
$1800 x 12 months = $21,600.00 Gross Annual Rent
ANNUAL REPAIRS & MAINTENANCE
Condominium: 4.16 % x $21,600 = $898.56 a year
Single Family Home: 6.78 % x $21,600 = $1464.48 a year
Repairs and Maintenance costs typically include: Appliance Repairs/Replacement, Carpet Cleaning/Replacement, Painting, Yard Maintenance/Service, Plumbing and Electrical Repairs, Equipment Repairs and Maintenance, Equipment Rental/Lease, Cleaning/Janitorial, Pest Control, and Locks/Keys.
Repairs and Maintenance costs do not include: Home Owner Dues/Assessments, Mortgage Payments, Property Taxes, Insurance, Utilities, Security Services, and Eviction/Attorney Fees.
