- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Are rental properties worth it?
Posted on 12/16/13 at 11:21 am to nogoodjr
Posted on 12/16/13 at 11:21 am to nogoodjr
quote:
500k to make 24k return a year? That's a lot of headache for that poor of a return.
500k at 8% return is 40k and all you need to do is rebalance your portfolio a couple times a year.
If I was going to put that size investment into anything, I would want a ROI significantly larger than the market. Depending on the risks associated with the investment or business I would want a 16-20% return to put up with the hassle.
Is 2k a month the total ROI or just the net cash flow monthly ?
Well said. This is something more potential real estate investors need to consider .. the fact that they're tying that much money up into something that has a lower ROI than other investments. I'm with you, if I've got 500k I'm not using that to make 20k.
1
Posted on 12/16/13 at 11:39 am to Rohan2Reed
quote:
Is 2k a month the total ROI or just the net cash flow monthly ?
I don't believe this was ever answered, but it seems like the OP was calling the $2k net cash flow/mo.
That's how I read it.
That would be $54k/year in gross income on a $100k down payment. The mortgage would be covered leaving $2k/mo after all expenses. That doesn't sounds bad to me.
I forget if it was a quad or larger, if it was a 5 plex, it would fall under different(higher) tax treatment I believe.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News