If you bought a house for $500k with a 5% down at 4% principle + interest.
5 years later that house is now worth $600k.
You sell the house.
How much is your profit? (excluding all the fees)
Kind of an ambiguous question. What exactly are you factoring into this calculation? Since you are excluding fees (which would leave you with a gross profit), are you counting insurance? Property taxes? The best way I can see an answer to this is to use an amortization calculator to see what's left on the mortgage after 5 years and then take that number and subtract it from the 600k you listed. This is of course not counting any buying or selling fees.
Yes, it is Bob. Just trying to understanding the profit you can make by buying and selling a house within short periods of time 5-10 years. Plus comparing that to investing in stocks.
Based on what you just said, let's say the property increase by 10% every year. In the 5th year, it would be worth $805k and mortgage left would be $459k (4% interest). That 10% is debatable but let's go with that in this calculation.
$805k - $459k = $346k profit (excluding all the fees)
Sounds too good to be true. Even after all the fees, you would still be taking home $300k.