To calculate the ROI (Return on Investment) percentage for a mortgage investment in a rental property, you can use the following formula:

ROI % = (Net Annual Income / Total Investment) x 100

Where:

• Net Annual Income = Annual Rental Income – Annual Expenses (including mortgage payments, property taxes, insurance, and maintenance costs)
• Total Investment = Down Payment + Closing Costs + Renovations + Other Expenses

Here are the steps to calculate the ROI percentage for a mortgage investment:

1. Determine the Net Annual Income by subtracting the Annual Expenses from the Annual Rental Income.
2. Determine the Total Investment by adding up the Down Payment, Closing Costs, Renovations, and Other Expenses.
3. Plug the values into the formula to calculate the ROI percentage.

For example, let’s say you purchase a rental property for $300,000, put a 20% down payment of $60,000, and spend $10,000 on closing costs and renovations. The property generates $24,000 in annual rental income, and the annual expenses (including the mortgage payments, property taxes, insurance, and maintenance costs) total $16,000.

Net Annual Income = $24,000 – $16,000 = $8,000 Total Investment = $60,000 + $10,000 = $70,000

ROI % = ($8,000 / $70,000) x 100 = 11.43%

Therefore, the ROI percentage for this mortgage investment in a rental property is 11.43%.