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Become an expert on the forum, check Forum Ranks.
Buying Process discussions and advice. Participate in ongoing dicussions and get invaluable Buying Process advice from people who are experts in their industries or start a new Buying Process discussion.
Jayesh shett..
( 1 post )

[2 Replies]
My parents recently started buying rental property and they've never given me a satisfactory response as to why they don't just keep buying more. Maybe i'm missing something crucial, but here's me looking up the first property listed on loopnet for my area. I read somewhere that you should budget 50% of the rent towards expenses, so i went with that.



Property cost: $299,490



Down payment: $74,872.50



Monthly rent: 3,570 (6 units, $595 per)



Loan amount: $224,617



Monthly payment: 1,624.57 (15 year, 3.67%)



Estimated expenses: $1,785 (would add 8% for management fee)



Take home per month: $160.43



Annual roi: 2.57% in cash, 17.60% when you include the principle paid towards the property.



Obviously this increases very quickly when you reduce your expenses every month. Is there something huge that i'm missing here?





    150 days ago In Buying Process
    Post Answer
    Imtiaz
    (1953 posts)
    Every body needs calories to keep the energy going and to satisfy the taste buds, some would find a fried chicken tempting, other would fancy a vegetable or salad - calories intook done, now it was just the tatse that every one preferred it differnt way!

    Every one needs finances and more finaces to keep their life moving and agendas to be pursued - Real Estate in whatever form may not be a cup of tea for everybody.


    Have met, interacted with countless people who pursue other interests with their finances for whatever tech startup, stocks, retails etc. They find real estate not as interesting as other ventures they are or like to pursue! For them real estate is low risk low gain, not something phenomenal overnight thing!

    Atleast in PAK context the mortgaging is a mess, it's no was closer to western styled mortgaging and that is why a tenant after paying rent for next many generations still remains a tenant!! So beyond south Eastern culture where mortgaging helps you buy more and more here it's a different context!!

    For rest, cup of tea thing applies...
      150 days ago 

      Isloo1
      (846 posts)
      A 19% gross rental yield* is exceptionally great investment. Everybody would like to jump on it, specially when you get the icing as well in terms of increase in property value.



      (* 18.57% to be exact)
        150 days ago 

        Post Answer (2 Replies)
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