Utilities Appreciation Rate
Annual growth rate for utility costs.
Example Result
Sample DataBased on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
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Utilities Appreciation Rate Formula
User Input (percentage)
Why It Matters
Utility costs can be a significant and growing expense, especially for properties where the landlord pays some or all utilities. Modeling a realistic growth rate helps you project whether a property will remain cash-flow positive long term.
Detailed Explanation
The Utilities Appreciation Rate models annual increases in utility expenses (electric, gas, water, sewer, trash). Utility costs have historically risen faster than general inflation in many markets due to infrastructure costs and regulatory changes.
Example
Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
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