Real Estate ratios

Discussion in 'Economics' started by jem, Nov 7, 2005.

  1. jem


    In your free time.

    If houses are selling for 220 per square foot.

    and mortgages cost about 600 dollars per 100,000 per month for 6% mortgage.

    how do I compute a ratio that will tell me how much a month I will fall short if rents are
    a dollar a month per square foot.

    Thanks for the help.
  2. You're making things overly complicated.

    Houses don't rent by the sq foot! It's more a matter of how many bedrooms a house has. Unless of course you're renting some 10000 sq ft mansion, or something. Also, don't buy 4 bdrms to rent out, you'll regret it. Stick with 3bd-2ba-2car. If you *have* a 4 bdrm, advertise it as a 3 bdrm, unless you're looking for sec. 8 HUD money.
  3. jem


    I appreciate the advice.

    But I really would like that ratio. Ideally I would just plug in the number per square foot.

    And in my area houses do roughly rent out on that per square foot number.
  4. pjbreen


    ((price per sq ft * sq ft.)/100,000)*(cost per $100,000)-
    (sq ft * rent per sq ft)
  5. jem


    thank you I will plug the numbers in tomorrow.