The condo house price is $260K.



Mortgage= $208K, downpayment = $52K.



Yearlycost: Mortgage (6.125%) = $1264 * 12, Tax 1% = $2.6K, insurance andHOA= $200 * 12. and $68 membership fee. Total cost = $20984

Rental income = $260 * 5% = $1300 (should go to $1500 include everything) * 12 = $18000.
Extra cost = Total cost - Rental income = $2984.



After 10 yrs, If the hous appreciation is 5%,
the final sale price for this comdon will be $260(1+0.05)^10 = $423.5K,
the mortgage left: $174644, and interest paid = $118303, with 5% commission, earn $227692 (EV)

Real profit = EV - 10 yr extra cost with 5% appreciation
= $227692 - $2984 (1-0.05^11) / (1-0.05)
= $227692 - $42393 = $185299



So rental annual appreciation is 52k(1 + x)^10 = $185299, X = 13.55%





downpayment 5% appreciation
$52k(1+0.05)^10 = $84702

With 4% housing appreciation, the X = 10.9%