Methodology (present value comparison)
PI = r × L / (1 − (1 + r)^(−n)) (fixed-rate mortgage)PV = Σ (CashFlow_t / (1 + d)^t) with discount rate dFor rent, invested cash (down payment + buyer closing costs) compounds at your assumed return and is netted against rent totals.
FAQ
What costs are included for owners?
Mortgage P&I, taxes, insurance, maintenance, HOA, purchase closing costs, selling costs, and net sale proceeds.
Why use present value?
PV accounts for timing of cash flows, allowing fair comparison of monthly expenses and future proceeds.