Rental Property Case Study #1
5205 Newton Street
![](https://lz-investments.com/wp-content/uploads/2017/09/5205-newton-st.jpg)
![](http://lz-investments.com/wp-content/uploads/2017/11/5205-newton-st-kitchen.jpg)
Property Info
Address: 5205 Newton St #202, Bladensburg, MD 20710
Year Built: 1966
Sq Feet: 956
Bedrooms: 2
Bathrooms: 1
Property URL: click here
Expenses
Monthly HOA: $302/month
Property Tax: $824/year
Home Insurance: $300/year (estimated)
Upkeep: $780/year (estimated)
Vacancy: $1300/year (estimated)
Monthly Management Fee: $65/month
Annual Expense: Monthly HOA x 12 + Property Tax + Home Insurance + Upkeep + Vacancy + Monthly Management Fee x 12 = $7608
![](https://lz-investments.com/wp-content/uploads/2017/11/5205-newton-st-dining.jpg)
![](http://lz-investments.com/wp-content/uploads/2017/11/5205-newton-st-bathroom.jpg)
Returns
Purchase Price (& Taxes): $89,022
Rehab Cost: $1000
Annual Revenue: Monthly Rental Income x 12 + Purchase Price x Home Value Appreciation = $20,051
Annual Profit: Annual Revenue – Annual Expense = $12,443
Annual return on investment: Annual Profit / (Purchase Price + Rehab Cost) = 13.82%