Let me pk with you...

Got a foreclosed house in 2009 for $70k + 7500 repair, rent for $1000/month. yearly expense ~$3500, net $8500/year  (11% cash flow)

in 2011, house appraisal value at $110k,  got Heloc for $77k.  Did not use it until 2012 for another one at $80k with $5000 repair.  Rent $1200/month.  The first house is also rent at 1200/month.  Interest expense $4000 + two house expense $4000 each.  Net $16800/year.

I only reinvested $8000 from first three years rent income ($25.5k).  My cash flow return at 16800/77500= 21.7%  and both properties are appraisal  $110k, which are 110k-77.5k, 110k-85k (or 32.5k, 25k), total 57.5k (57.5/77.5 = 74.2%) capital gain in three years or average 20% a year.

so in three years, my cash flow reachs 21.7% and capital gain at 20% annual rate.  If I try to do it again at 6th year (2015) and 9th year (2018) without extra investment, my cash flow on the initial investment (77.5k) would be at 50%, and capital gain at 15% annual rate. 


BTW, this is a real case. not guess
 

所有跟帖： 

• Not a fair comparison. 你那个是特例。人家是index fund。你买到过几个这样的房子？ -知人知面- ♂ (45 bytes) () 09/12/2013 postreply 00:06:45

• I guess, that is what his intention, right? -planotx- ♂ (97 bytes) () 09/12/2013 postreply 08:50:22

• 而且这是每年都保证的return，不象mutual fund是10年平均，一年可以负50％ -kozy- ♀ (89 bytes) () 09/12/2013 postreply 00:12:12

• right, very soild return year after year. -planotx- ♂ (0 bytes) () 09/12/2013 postreply 08:51:17

• 回复：Let me pk with you... -nullll- ♂ (55 bytes) () 09/12/2013 postreply 05:02:46

• rental income is very steady... -planotx- ♂ (0 bytes) () 09/12/2013 postreply 08:52:13

• 高人啊。在哪个地方？ -南点- ♂ (0 bytes) () 09/12/2013 postreply 09:24:59

• my ID.. :-) -planotx- ♂ (0 bytes) () 09/12/2013 postreply 11:04:34

• 7万的房子一个月能租壹千？这是什么好地方？ -OCND- ♀ (0 bytes) () 09/12/2013 postreply 19:29:15