Originally Posted by directfiesta

Would of being nice that you explain your logic here , as I cannot add it up ....

Why did I put 400 K in real estate ? Because, it was coming out of 10 year term bank deposits/investment bringing me 6.55% ( 26K a year interest, less taxes ) .
When renewal came up, the best I could get was 1.35% on freezed 5 years term ( 7K , less taxes ) . And lets not get into inflation ....

Now, with 80K down, I bougth a property of 350K ( 3 rental units- 2500/month ) at 2.89% interest . Cash flow is positive and with capital payment from tenants, my return was over 15% , not counting increase in value.

Repeated with remaining cash on hands . 400K got me 2 million of property ....

So the low interest were the main factor to remove the money from the bank, and low mortgages were the main factor to put it in real estate ...

At 1.5% yearly plus value, still not counting inflation ) the value goes up of 30K a year ....

Latest mortgages are at 2.2 et 2.39 % ....


Selling ??? Yeah, here I come to beg to get 1.15 % .....


On the other hand, I am not one of the '' big playa '' with ferraris, maserratis and a fucking fountain on my front lawn ....