Updated over 5 years ago on . Most recent reply
45% return unrealistic?
sounds crazy but here are my numbers
Say you find a single family for 200k in a c class neighborhood with a 9 cap rate
purchase price- 200k
cap rate- 9
80/20 financing, 40k down
streams of return
appreciation (3%)- 6k
rental income - 9k (18k-9k loan payments)
loan paydown- 3k
total return- 18k
roi- 45%
Why wouldnt everyone be all over this?
Most Popular Reply
Bill B.
#3 1031 Exchanges Contributor
#3 1031 Exchanges Contributor
- Investor
- Las Vegas, NV
You could increase your ROI by putting less down but you're making some very basic mistakes.
No property management.
No insurance
No property taxes
No repairs/cost of acquiring tenants/vacancy/capex