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How do you convert principal pay down into a percent that would represent the pay down part of your return?

deco

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Aug 26, 2018
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Is down payment divided by annual pay down (principal only), a way to calculate a return percentage on principal pay down?


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Cory Sperle

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Down payment plus all associated closing costs divided by annual pay down is a rough estimate to calculate the percent return on principal pay down, which is in fact the only 'real' portion of your return you can calculate. Cash flow and hypothetical appreciation are components, however far from assured. Of course your pay down is only converted to an actual 'return' when you sell the property
 

deco

New Forum Member
Registered
Joined
Aug 26, 2018
Messages
9
Down payment plus all associated closing costs divided by annual pay down is a rough estimate to calculate the percent return on principal pay down, which is in fact the only 'real' portion of your return you can calculate. Cash flow and hypothetical appreciation are components, however far from assured. Of course your pay down is only converted to an actual 'return' when you sell the property

Thanks for your reply


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