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Richard Wan
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Hi JE,

To calculate rental yield, the formula is (annual rent)divided by (purchase price).

For example, if you are collecting $3,500 a month and you bought your property at $1.25mil, the rental yield is [(3,500x12)/1,250,000] = 3.36%.

A rental yield of over 4 -5% is considered a very very good investment.

Thanks!

Regards,
Richard Wan
Black Diamond Real Estate
richardwan@live.com
 94363793  Read More
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