Let’s start with a premise—you want to buy a profitable rental property.

How would you know if it is going to be profitable? Frankly, you don’t. Because whatever you think is going to happen may not happen.

That’s true of everything.

So, let’s go to the next step. How can we take what we think we know and make a well-reasoned projection of a rental property’s profitability—after taxes?

Answer: read this article and use the calculator to find your projected after-tax adjusted rate of return.

Starting Point

What rate of return do you currently earn on investments that you consider safe? Let’s say you have an investment that grosses 5.17 percent before taxes and 3 percent after taxes.

Now, let’s say you find a rental property that you like and use our calculator to find that this rental will produce, if your projections are right, 279 percent more profits ... Log in to view full article.