Greatest Return

Recently I had a businessman tell me that residential rental properties are only good for about an 8% return on investment (ROI) and that for all the work they require they are not worth the hassle.  Using a napkin and some quick calculations I explained why I disagreed with him and I would like to share my argument with you.

The ultimate factor for the ROI on rental properties is how much you pay for the home.  Common sense would tell you the better deal you get when you buy the home, the higher ROI.

For the purpose of this example we will make the following assumptions: READ MORE