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How much should I pay for a rental property?
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Question:I am about to buy an investment property. I want to get a return of 5% cash on my cash investment. How can I determine the maximum price that I should pay, given that I know rental income and operating expenses?
Answer:Use the calculator below, simply put in your numbers.
Note: The logic behind the formulas used is described here:http://www.creonline.com/articles/art-216.html