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Updated about 6 years ago on . Most recent reply

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Lawrence Snipe
  • Flipper/Rehabber
  • Charleston, SC
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Most Popular Reply

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Erik W.
  • Real Estate Investor
  • Springfield, MO
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Erik W.
  • Real Estate Investor
  • Springfield, MO
Replied

@Lawrence Snipe, that's sort of like asking if red is a good color.  "It depends."

The amount of money it takes to generate the income is one metric.  Example, if you are "all in" to this property for $30,000 of your own cash, then $250/month (10% annual) is a good ROE (return on equity).  If you paid $300,000, then your ROE (1% annual) is sub-par and you would do better and have less stress investing in S&P 500 mutual funds.

There are other metrics such as ROI (Return on Investment), Cash on Cash, etc. Example, if you only put $1000 down....then your cash on cash return is 300%, which is great! If you put down $0, then your cash on cash is infinite.

Need more details on what you're doing, how much $ is involved, how much of it is your money, how much time you're spending on it, etc.

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