Realtor · Colorado Springs, CO · Member since 2013 · 987 posts · 447 votes
11y
Double $30,000 is a year is a lofty goal but is certainly possibly. There are different avenues you could take to do this.
You could flip 2 properties, one at a time, and probably double it that way if you have the right connections.
You could also buy a new rental property. It's possible that you could buy a property that is at a really good value (not necessarily cheap), do some forced appreciation by putting some upgrades into, and renting it out, you may be able to double $30,000 in a year. Just know that your money will be in the form of equity as opposed to cash and if you sold it at the end of the year you may not have the full $60,000 after selling costs.
Realtor · Colorado Springs, CO · Member since 2013 · 987 posts · 447 votes
11y
Double $30,000 is a year is a lofty goal but is certainly possibly. There are different avenues you could take to do this.
You could flip 2 properties, one at a time, and probably double it that way if you have the right connections.
You could also buy a new rental property. It's possible that you could buy a property that is at a really good value (not necessarily cheap), do some forced appreciation by putting some upgrades into, and renting it out, you may be able to double $30,000 in a year. Just know that your money will be in the form of equity as opposed to cash and if you sold it at the end of the year you may not have the full $60,000 after selling costs.
Guy with Great Hair · Austin, TX · Member since 2013 · 2k+ posts · 4k+ votes
11y
The rule of 72 is a formula for determining how many periods it takes to double an investment depending on an interest rate.
so for you, you would have 72/(rate of return annually) = 1(# of years). This math is really simple for 1 year, you would need a 72% rate of return (72/72=1).
Now, since earning a 72% return in traditional investments is fairly impossible. You'll need to find a way to force it. Like Colin said, flipping could work if you found the right deals, got them done fast.
That said, everyone wants 100% return, so if it were easy it wouldn't be a secret. In fact, the vast majority of investors (in all industries) would probably be pretty happy to earn 30% ROI (consistently).
Also it depends on how passively you want to earn that. Flipping is a job, so earning 30k in savings from a regular w-2 income would be another feasible method.
I think your best bet would be to do a flip or two as @Colin Smithmentioned above, however, if you have never done a flip before, you likely will not make that kind of money. Not saying you can't, but would be tough! Good luck!
Realtor · Atlanta, GA · Member since 2015 · 693 posts · 357 votes
11y
You could easily double that with a flip. You actually could get started with the BRRR strategy with this. Buy a house for 50k, that after being fixed up would be worth 80-90k, put in 10k in rehab. That'll increase the value of the home so you can do a cash out refinance, and then rent out the property that hopefully cashflows maybe $400 a month in profit, and then buy the next house with the same money you just pulled out and do the same thing. You can build up a big portfolio that way without having to save up money each and every time :) Otherwise you could just do a flip on a house in the 40-70k range and possibly double your money in 1-2 flips, and you'd get a lot of great experience that way as well.
Rental Property Investor · Southern, ME · Member since 2015 · 46 posts · 48 votes
11y
The best bet to double your investment would probably be a flip, but you may also be able to buy/fix/rent and pull out the equity of the new value plus cash flow each month. There are also similar methods using lease to own programs.
The rule of 72 is a formula for determining how many periods it takes to double an investment depending on an interest rate.
so for you, you would have 72/(rate of return annually) = 1(# of years). This math is really simple for 1 year, you would need a 72% rate of return (72/72=1).
??? Sorry, but this is simply not the case. If he has $30k at the beginning of the year and he wants $60k at the end of the year that his return must be 100% in order to double the money.