How to Evaluate Debt Service on a Rental Property


26 thoughts on “How to Evaluate Debt Service on a Rental Property

  • Hi Mr Morris I want to start buying houses very soon in IN. I was wondering what is your opinion on BORROWING money (Asset based) to start my investing career ?? Do you recommend this strategy? Because I was thinking how Im going to pay the money back from the lender…is it from the rent? ANy ideas? Thank you sir. I really appreciate your videos and inspiration.

  • You often mention the rent times 12 months times 60% but if there is a mortgage does the calculation change to rent minus mortgage times 12 months times 60%? Even further, do you calculate rent minus PITI, etc..?

  • Hi. Thanks for the spreadsheet.
    How are you getting those "Monthly Payment On Debt" number in the spread sheet. They don't fit with standard amortization calculations for monthly payments. What is included besides, for example, a 10 year loan at 10% interest. Thanks!

  • Hello,

    Thanks for the video and the spreadsheet. How do you calculate the "Monthly Payment on Debt Service" for all of the columns:

    – Interest Only Balloon Load: 8% Interest
    – Amortized Loan: 5%
    – Amortized Loan: 10%

  • Hi Clayton where is the spreadsheet you mentioned that you would provide a like . For figuring out your profits. Thanks for the video!

  • Hello Morris I am going to buy my first rental property by the end June you the one that inspire me thank you so much.

  • Hi Morris…we own 7 properties in Western NY, and the average ROI after all debt service and expenses averages between 38% – 61%. I'm good at math, and I know we bought right (20% down on each) and we average $1/sq foot rent, so what am I missing? Seems like the market here is great….comments? Rick Hoeft

  • What if the debt service is bigger than the rent? Like by $250? We can’t get funding except with a 10% personal loan, we live in the EU. Can we get private money in the US? We want to buy our first rental propriety with you guys as soon as possible! Thank you for all you do, you are such an inspiration!

  • Working with a company like MI not knowing the address what site can I use like Rentometer to determine possible insurance rates, every agent/broker Ive spoken with needs an exact address.

  • Which video talk about lowering debt service ? On your channel? How to lower property taxes , how to lower home owners insurance ?

  • I downloaded that spread sheet and understand most of it. Can you explain what you actually did with the numbers under amortized 5% and 10 and why the monthy cashflow get into the negatives.

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