ROI Calculator



This ROI Calculator (Return On Investment calculator) is a simple version of what we use to analyze investment opportunities for our clients at Five Star Real Estate & Property Management.  To begin, enter a purchase price (include all acquisition costs such as closing costs, repairs, etc.) in the top green cell which is highlighted.  Below that next to rent, enter the estimated monthly rent.  It will automatically populate to show the annualized gross rents for the property.  Below that you can fill in an estimated vacancy.  Many novice investor and even real estate agents do not account for vacancy, however this will be one of the largest expenses in rental home ownership, so we recommend you enter a number you are comfortable with (we usually use 1 month or 8.3%).  Below that you can fill in the HOA dues payements (if you have a SID/LID, you could add it to this number to get a more accurate estimate on your investment).  Next and one column to the right you will insert the annual tax payments (available on the Clark County Assessor or Treasurers page).  The last number to insert in the calculator is the annual insurance payment (we have great insurance carriers we can introduce you to that have rates as low as $200/year, however we prefer to estimate around $400-500/year depending on the property).  Then a Return on Investment will appear in the yellow box.  From here you can play with the Purchase Price or the other items to see what it would take to get you to your desired return.  As always, feel free to contact our office with questions or to analyze a specific property accurately with real numbers.