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Real Estate 101: Calculating ROI

erin • May 04, 2023

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Calculating ROI: Article 6 of 8

The acceptable ROI (return on investment) for residential real estate in the US can vary depending on a number of factors, including the location of the property, the condition of the property, the local rental market, and the overall investment goals of the investor.


In general, a good ROI for residential real estate in the US is considered to be around 8-10% annually, although some investors may aim for a higher or lower return depending on their specific investment strategy and risk tolerance.


It's important to note that ROI is just one factor to consider when evaluating an investment property. Other factors, such as cash flow, appreciation potential, and tax benefits, should also be taken into account when making an investment decision. Work with a trusted real estate professional or investment advisor to help you evaluate potential investment properties and determine an acceptable ROI based on your investment goals and risk tolerance.


The acceptable ROI (return on investment) for residential real estate in Bozeman, MT, can vary depending on several factors, such as the location, condition of the property, the local rental market, and the overall investment goals of the investor.


In general, an acceptable ROI for residential real estate in Bozeman, MT, is considered to be around 4-6% annually, but it can be higher or lower depending on factors such as the property's age, condition, and location, as well as the rental income potential of the property.


It's important to note that ROI is just one factor when evaluating an investment property. Other factors, such as cash flow, appreciation potential, and tax benefits, should also be taken into account when making an investment decision. Work with a trusted real estate professional or investment advisor to help you evaluate potential investment properties and determine an acceptable ROI based on your investment goals and risk tolerance.


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