ASU housing • Four-year comparison

Four years of rent, or four years building equity?

For a family paying $1,200 a month for off-campus housing, this Tempe home offers a different possibility. Here is the math behind the Reel.

Rent for four years $58K

$1,200 per month × 48 months = $57,600 paid in rent.

Possible added equity over four years $74K*

Loan paydown plus a hypothetical 3% annual increase in home value.

How the ownership example works

01 / THE HOME

Three bedrooms in Tempe

618 W 12th St is listed at $459,900. In this example, the family puts 20% down and the student lives in one bedroom.

02 / THE MONTHLY COST

Room rent helps cover the payment

Estimated mortgage, taxes and insurance: $2,845 monthly. If two other rooms each rent for $1,000, the family's share is about $845 before other costs.

03 / THE EQUITY

Two ways equity could grow

About $15,800 of loan paydown over four years, plus about $57,700 of value growth if the home appreciates 3% annually.

Monthly reality check: $845 after possible room rent + a $383 monthly repair reserve = about $1,230 per month, before utilities, vacancy and other costs.

≈ $1,230 / mo

Even if the home’s value stays flat, this example could build about $16,000 in equity through loan paydown. Four years of rent at $1,200 a month would cost nearly $58,000 without building ANY equity. Whether owning comes out ahead depends on rental income, ownership costs, and selling costs.

See the numbers for your family.

Get a breakdown using your down payment, financing options and expected housing costs.

Get my breakdown

*Illustrative scenario as of October 1, 2026. Purchase price $459,900; 20% down ($91,980); 30-year mortgage at 7.28%; 2025 property tax of $2,179 per year; estimated insurance $146 per month. Monthly payment is approximately $2,845. The $383 monthly repair reserve is 1% of the purchase price annually. Four-year equity growth includes approximately $15,842 in principal paydown and $57,722 in hypothetical appreciation. Initial down payment is existing equity and is not included in the $73,564 gain.

Room rents and home appreciation are assumptions, not guarantees. Actual loan pricing and occupancy eligibility require lender approval. This illustration excludes closing and selling costs, vacancy, utilities, repairs above the reserve, property tax changes, insurance changes, taxes on rental income and the opportunity cost of the down payment. It is not a promise of savings or profit.

Property information: 618 W 12th St listing. Rate reference: Freddie Mac mortgage rate survey. Confirm price and availability before publishing.

Real Broker AZ, LLC · Daniel Barash, REALTOR® · AZ license SA665924000
Listed by Carressa Solis, Polly Mitchell Global Realty. This is another broker's listing, not Daniel Barash's listing or transaction. Equal Housing Opportunity.