- when asked rent and house expenses as a percentage, is it a percentage of initial cost? current value? future value? It doesn't really make sense as a percentage. I don't charge a tenant X% of my cost, I charge market rate which may be more, or less than my actual expenses.
- same for taxes. it's a nearly fixed amount that increases over time, but trying to do it as a % calculation of actual dollars is often incorrect because that's not how it's calculated in real life.
- compound interest should be the default.
- when asked rent and house expenses as a percentage, is it a percentage of initial cost? current value? future value? It doesn't really make sense as a percentage. I don't charge a tenant X% of my cost, I charge market rate which may be more, or less than my actual expenses.
- same for taxes. it's a nearly fixed amount that increases over time, but trying to do it as a % calculation of actual dollars is often incorrect because that's not how it's calculated in real life.