Rent Vs. Buy

Property Info: Purchase Price: $150,000 Initial Rent: $12,000 Growth Rate (rent, property value and expenses): 2% Insurance/Maintenance: $1,000 Marginal tax rate: 28% Property tax rate (% of value): 1.5%

Loan Info: LTV: 80% Interest Rate: 7% Term: 30 years Selling Expenses: 7%

Calculate YR 1 BTCF Owner

Mortgage Pmt (P+I)
+Property Tax
+Insurance/Maintenance
Total BTCF

Calculate Tax Savings Owner

Property Tax
Interest
Total Deductions
Tax Savings

Net CF from Owning

BTCF Owner Tax Savings = ATCF Owner vs. ATCF Rent

ATCF from Sale Owner

Sale price in Year 5 Mortgage Balance Selling Expenses