DID YOU KNOW?
If you had invested in Tampa, FL instead of Cincinnati, OH in 2015, you would now have an additional $112,288 in cash and equity.
The math for this comparison:
Description | Cincinnati, OH | Tampa, FL | Difference |
---|---|---|---|
Property Value | |||
Median Price 2015 | 149 102 | 163 597 | 14 495 |
Median Price 2023 | 272 483 | 375 807 | 103 324 |
Increase in Equity | 123 381 | 212 210 | 88 829 |
Cash flow | |||
Price/Rent ratio | 15,09 | 14,64 | |
Rents Collected (Annual) | 18 059 | 25 678 | |
Expenses (Assuming mortgage at 70% LTV) | (12 683) | (15 851) | |
Net | 5 376 | 9 827 | 4 451 |
Tax Burden as a percent of median income (different from tax rate) | |||
Income Tax Burden | 2,28% | 0,00% | |
Property Tax Burden | 2,74% | 2,75% | |
Total Tax Burden $ (Income Tax % x Net) + (Property Tax % x Avg Property Value) |
5 898 | 7 417 | (1 519) |
Total Property Difference | 88 829 | ||
Annual Income & Expense Difference | 2 932 | ||
Total Income & Expense Difference (Annual x Number of Years) | 23 459 | ||
Total Difference From 2015 | 112 288 |
The assumptions:
- Median household income in each location
- Median property price in each location
- Average US household annual expenses
- Tax burden based on percent of median income, not simply tax rate
- Mortgage assumption is 70% LTV