Financial Analysis

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You will double your money in 15 years or less

You can get into a new rental property for less than $20,000. Of course, the more money you put down the better your cash flow. If you put down 20%, you will very likely experience positive cash flow.

But, let's assume you get 80% financing and only bring $32,000 to the closing table for down payment, closing costs, and pre-paid expenses. Under this scenario, you will probably run positive cash flow annually (after accounting for your Homeowner's fees, insurance, taxes, and property management). Compare this to an investment in the stock market where you earn 10% per year for 10 years.

• If you were to invest the same $20,000 in the stock market for ten years, your investment would net you $39,000 in profits at the end of 10 years.
• If you invest the same into a new rental property which appreciates at 5% per year, your investment will net you $82,000 in profits - MORE THAN TWICE what you would have earned in the stock market. And that doesn't even take into consideration all of the income tax benefits associated with real estate investing.