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calcing
according to my calculations, the price for the condo at which it would be set at neutral cash flow is $160k.
assuming rent at $1750 per month:
ROE = (cash flow + appreciation + loan reduction + tax deduction)/downpayment.
At $250k, ROE = 17%.
ROE=(-651.50+(250k*4%)+2169+(250k*0.7/27.5)*0.3)/50k ROE = about 17%
(this assumes fixed amortized payments, not interest only. other numbers and assumptions may vary).
At $160k, ROE = 26%.
As for its worth, who the hell knows. 🙂
