The Straight-Line Answer (And Why the Textbook Formula Isn’t Enough) To calculate rental property depreciation, start with your depreciable basis: the purchase price plus allowable closing costs and capital improvements, minus the value of the land. For residential rentals, divide…
How to Calculate Home Sale Profit: The Manual Method That Reveals True Taxable Gain To calculate home sale profit for tax purposes, start with your sale price, subtract your adjusted cost basis (original purchase price plus capital improvements and certain…
The Net Rental Yield Formula You’ll Actually Use If you want the straight answer to how to calculate net rental yield, here it is: take your total annual rent, subtract every operating expense and debt cost, then divide by either…
How to Figure Out Cash Flow on a Rental Property (The Core Answer) If you came here asking “how to figure out cash flow on rental property,” here is the blunt answer: take your gross rental income, subtract every operating…
If you’re asking how to calculate commercial mortgage payment, the shortest answer is: use the loan’s principal, the fully amortizing period (not the balloon term), and the note rate in a standard PMT formula. For a $1,000,000 loan at 6.5%…
How a Dual-Income Mortgage Works: The Math, The 3-3-3 Rule, and the 1-Salary Hack A dual-income mortgage is not a separate loan program. It is a standard home loan—conventional, FHA, VA, or USDA—where the lender underwrites two borrowers’ paychecks as…
How To Calculate A Balloon Mortgage Payment: The Short Answer To calculate a balloon mortgage payment, run two simple steps. First, compute the fixed monthly payment as if the loan fully amortized over the long stated term (often 30 years)…
When clients ask me how to calculate housing cost ratio, I give them the unglamorous truth upfront: the formula is Total Monthly Housing Expenses ÷ Gross Monthly Income × 100. If you earn $8,333 a month before taxes and spend…
The Straight Answer: How to Calculate Debt to Income Ratio To calculate your debt-to-income (DTI) ratio, sum every required monthly debt obligation—rent or mortgage, minimum credit card payments, installment loans, student loans, auto loans, and often overlooked items like buy-now-pay-later…
The Core Answer: How to Calculate Down Payment Assistance in One Breath To calculate down payment assistance, you must quantify four variables: (1) the maximum aid your program allows, (2) your baseline down payment required by your primary loan, (3)…