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First and foremost, the value of a property is determined by market value, which is the most likely selling price that a typical buyer would be willing to pay. An approach based on determining the value of real estate using the comparative method (comparison with similar objects of the value of objects), the income method (determining the yield from leasing similar real estate in a given location), the cost method (determining the cost of construction).
For details on how to evaluate real estate, see the article https://baliray.me/paybackcalculation
Return on investment when renting out – 7 years:
Let's say you are planning to invest in a property worth $180,000 in a popular area.
On average, the monthly rental price for housing with a similar area, location, renovation
will be $4,000 per month. You can see a detailed calculation in the article "Calculating return on investment"
80% occupancy will result in revenue of $3,200 per month.
The costs of the management company, on average, are 25% of revenue = $800.
Remaining revenue = $2,400.
Tax – 11% = $264.
That is, the planned profit will be $2,136 per month, or $25,632 per year.
Total return on investment:
$180,000 divided by your annual income $25,632 = 7. The investment will pay off in 7 years. You can see a detailed calculation in the article "Calculating return on investment"