Is buying a mortgaged property profitable?
I can't speak to details in India, but if I were doing this analysis in the US here are some things that I would see as missing:  Property insurance  Taxes  Maintenance costs  You are not taking into account how often the property will go unrented. Plus, you are assuming a constant appreciation rate of 10%, which seems very optimistic. You should run the analysis at varying appreciation and occupancy rates and see if there are some scenarios which you make less than you could with other, safer investments. I'm not saying you shouldn't do it, but having a mortgage on an investment increases the chances of losing the investment (i.e. if you can't make the mortgage payment because it goes unrented) and sucks away a portion of the profit to interest. So the profit can increase (because of leverage) but the risk increase as well.