Quote:
Originally Posted by OneHungLo
You calculated wrong and you do not buy RE with cash.
Here's a super fast example with obvious things left out but it should put you in the right frame of mind.
EXP 1: You buy one house for $100,000. It rents out at 1k a month = $12,000 a year.
in 20 years | $12,000 x 20 years = $240,000 + (lets say the house doubled in value) $200,000 + $240,000 = you made $440,000 on your $100,000 investment.
EXP 2: You take your $100,000 and buy 10 houses putting down $10,000 on each house. They rent our for 1k each but most goes towards paying down mortgage. After 20 yrs, mortgages are paid off and (lets say they are now renting out for $2,000 a month) $24,000 in rental income. Now you have 10 houses worth $200,000 a piece = $2,000,000 with $24,000 a month in income.
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i am very interested to know where you get houses that do not need maintenance, not need insurance and always have renters that really pay you.
jezz also asked for investment in europe. I am not sure how much you know about rights of renters here. it can take you years to get them out if they donīt pay you and damage your property.
what does not mean that investment in a house is not an option. but on the longterm it is far less as one have expected. and if you make the whole thing as a biz you always deal with 51% good and 49% bad decisions. the profit is a mix of both.