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Updated almost 5 years ago on . Most recent reply

User Stats

834
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449
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Danny Webber
  • Real Estate Broker / Investor
  • Austin, TX
449
Votes |
834
Posts

THIS YEAR YOU NEED A 12% NET NET RETURN ON YOUR REI TO BREAKEVEN

Danny Webber
  • Real Estate Broker / Investor
  • Austin, TX
Posted

Am i thinking about this the right way?

US dollar net value drops almost 7% in the last three months

+

An assumed true inflation rate of 5% (shadowstats.com)

Loss of purchasing power 7% + Inflation @ 5%= 12% decline in overall value of the dollar?

So ever dollar you take in for rent is worth .88 cents so far this year. The only upside is low interest rate long term debt is now cheaper to hold due to the devalued dollar. 

Thoughts?

  • Danny Webber

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