# Figuring Yields - Posted by Mark Sweeney

Posted by Mark Sweeney on October 04, 1999 at 19:02:56:

Hi Bud,

You aked the following questions my answers follow.

Was there no cash flow or expenses during this time period? I have just recently got a postive cash flow after payment, taxes and insurance of 210.00 monthly.

Or is this the appreciation over what you purchased the investment for? Yes I paid 97,000 now it’s floating around 130,000 to 136,000. My outstanding balance is at 52,7000. Since my purchase I’ve put about 11,000 dollars over the years in maintance.

A property that has a “real” appraisal vs a tax value or market analysis can have the top 10-15% of value evaporate if it has to be sold. Deferred maintenance and equity build by paying down principle also need to be considered in determining the yield on a real estate investment.

Figuring Yields - Posted by Mark Sweeney

Posted by Mark Sweeney on October 03, 1999 at 20:54:08:

Hi All,

I would like to know if I’m figuring my Yeilds correctly

using Hugh Chou’s website http://www.interest.com/hugh/calc/compound.cgi

I put in the following numbers

Starting Value of Investment: 137,500 ( What I paid two years ago)

Final Value of Investment: 161,500 (Appraised value today)

Input Total Duration in Years 2

Total Yield 117.09 %
over 2 Years
Annual Yield 8.2086 %

Is this right?

thanks

Re: Figuring Yields - Posted by Dave T

Posted by Dave T on October 06, 1999 at 23:40:40:

If you invested \$137,500 two years ago, and the value of your investment is now \$161,500 (with no withdrawals), then the total return on your investment is \$24,000 (assuming no other contributions).

Dividing 24000 by 137500 results in a total yield of 17.45%. On my calculator, this works out to about 8.376% annually.

Just Curious - Posted by Bud Branstetter

Posted by Bud Branstetter on October 04, 1999 at 09:51:50:

Was there no cash flow or expenses during this time period? Or is this the appreciation over what you purchased the investment for? A property that has a “real” appraisal vs a tax value or market analysis can have the top 10-15% of value evaporate if it has to be sold. Deferred maintenance and equity build by paying down principle also need to be considered in determining the yield on a real estate investment.