New investor looking for analysis of my "portfolio"? Am I on the right track.

1 Reply

Hello Everyone, New to the site and looks like there is a lot of information here so I’m looking forward to going through it all. Im currently working on getting through all the podcasts from the last couple years.

I would like some opinions on my portfolio because I’m not sure if I’m getting returns I should be.  Im starting to look for my next property and to continue with the same strategy I have been working with but wondering if its time to move onto a new idea?

My "portfolio" is 2 Single family home converted too up/down duplex’s

one is valued at $420ooo (Build 2011) and the other is valued at $500ooo. (Built 2014) my total debt on this properties is $667ooo ($284ooo and $383ooo) which leaves me with roughly $250ooo in equity.

these properties are cash flowing about $750 a month each which is $18ooo per year. My principle pay down is about $18000 a year also. plus appreciation which is still strong in my area.

So $36ooo/$250ooo = %14.4 return on equity, plus appreciation.

The homes are both more or less brand new so i don’t anticipate any expensive problems for at least 10 years. great tenants because there slightly higher end properties. Good/Cheap mortgages as I only have to two properties.

My Question is, are this Decent/acceptable returns? I have a lot of equity and sometimes i feel like I could move onto a considerable larger investment. But the home are about as hassle free as could be and I would like as passive investing as possible as I already have a great/busy career. 

@Rod Flint  - Welcome to BP!

Your strategy / returns are a personal preference.  75% of my rentals are in a good area in a growing urban market, with appreciation potential (and gains already), and ok cash flow.  The other 25% of my properties are in a ok area with little growth, no appreciation potential, but great cash flow.  I could liquidate my 75% and put that into the area with the other 25% for double to triple the cash flow (and I could retire) but I would not in a million years!  

I feel my properties in the growing urban market will be a better long term investment - but at some point I would like to be 50/50 in the markets.  But I will do this by buying more in the cash flow area

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