Thread: $100k to invest
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Old 04-30-2019, 08:51 AM  
Klen
 
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Join Date: Aug 2006
Location: Little Vienna
Posts: 32,235
Quote:
Originally Posted by directfiesta View Post
I cannot disagree more ...

Real estate is where you got other people money ( banks ) work for you ...

His 100K will give him access to another 400K , with that he can buy a 3 units rental property ... Mortgage payments paid by the tenants ( let say about 8K a year ) , and he still has plus value with the years, mainly if the rents are increased regurarely.

So 8K/year on 100K gives you 8 % .
If the property value increase is a mere 2 % , that gives 10K , 10%

Total: 18K on 100K : 18% ... covers inflation just fine

Taxes: comes to 0 income by amortizing some of the principal .

Disadvantages: you must work a bit ( maintenance, leases, conflicts, ...)
Advantages: you can pass expenses against the income

Are you reffering to investing by using mortgage? In that way, i can see it to make it work compared to cash investment, in fact i meet a dude recently which claims how he make good money with it, tho it's kind unknown area to me.
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