Down payment plus all associated closing costs divided by annual pay down is a rough estimate to calculate the percent return on principal pay down, which is in fact the only 'real' portion of your return you can calculate. Cash flow and hypothetical appreciation are components, however far from assured. Of course your pay down is only converted to an actual 'return' when you sell the property
Down payment plus all associated closing costs divided by annual pay down is a rough estimate to calculate the percent return on principal pay down, which is in fact the only 'real' portion of your return you can calculate. Cash flow and hypothetical appreciation are components, however far from assured. Of course your pay down is only converted to an actual 'return' when you sell the property