I am trying to buy a building that gives me 8% ROI on investment?
2006-07-23 03:07:00 · 2 answers · asked by Stone 1 in Business & Finance ➔ Renting & Real Estate
Since most real estate investments tend to be heavily leveraged, i.e. mortgaged, the ROI is very high.
For example, I recently sold a property that I had put down $2,000.00 on and mortgaged the rest. Rents covered the mortgage payments and made for a small positive cash flow and a nice tax writeoff each year.
I held it for 10 years, thorugh a major bubble burst, and sold at a $50,000.00 profit. My investment was $2,000.00 and my profit was $50,000.00 in 10 years. Do the math!
2006-07-23 04:04:47 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Depends upon how leveraged it is and the future appreciation in your area. Make sure the monthly cash flow is positive and the rest will take care of itself if you're patient.
2006-07-23 10:59:08 · answer #2 · answered by Searchlight Crusade 5 · 0⤊ 0⤋