{ "media_type": "text", "post_content": "Does anyone here invest in real estate (single/multifamily)? How is the 5-10 year ROI? Im modeling it out and it seems like a mediocre investment with lots out of pocket in initial years, unless you get really lucky with appreciation.", "post_id": "601a201d568b18002af6a20b", "reply_count": 4, "vote_count": 4, "bowl_id": "552d1d24dc1c586b09d2d051", "bowl_name": "Consulting", "feed_type": "crowd" }

Does anyone here invest in real estate (single/multifamily)? How is the 5-10 year ROI? Im modeling it out and it seems like a mediocre investment with lots out of pocket in initial years, unless you get really lucky with appreciation.

like
Posting as :
works at
You are currently posting as works at

ROI is going to vary from property to property. Purchased a triplex with $36K out of pocket and I now have $85K in equity (loan pay down plus appreciation) after 2.5 years. Equity aside, the key metric I look at is cash flow - will rents cover opex (mortgage, taxes, insurance, repairs, vacancies)? As long as the deal cash flows positive then I’d invest in it. Right now I live in one of my units so I pay out of pocket ~$200 / mo, but once I move out and rent the third unit, I’ll be generating $1,500 / mo. Once the property is paid off, majority of rents will be passive income, so monthly cash flow will be way higher than $1,500 (a nice stream to have for retirement).

likesmart

If you don’t mind me asking - what city/state did you buy your triplex?

like

It's easy passive income for really only paying for maintenance and operating costs which are all tax deductions. You can easily be in a place where the income is low or tax-free and when you sell you get your down payment and equity back anyway. I wouldn't solely rely on rental investments but definitely a good steady reliable income source. Other than cash flow, capitalization rate is typically a more common metric to evaluate ROI on rental investments. 5.5% cap rate seems to be a common minimum when evaluating investment properties

like

Bad way to look at it, bought a duplex with my buddy 6 years ago and it will be paid off in 5 years. Initial investment of 35k my share will sell for 150 assuming no appreciation. 4.2x initial investment in 10 years plus tax benefits.

Additional Posts

Testing at 9am EST

like

Post with company

like

Maybe we should implement something like automatic posts refresh? I got a notification about "someone like mypost" but it isn't displaying at the post title...

like

Testing a new post at 12:06PT 5.12

like

Yeah you're right. It cuts after two lines instead of expanding.

like

Not seeing any other posts!

Hhjjndjjffjjddjdh dndbbdndjjdjdndnnf dndbdhjxjdjd djdjhdjdjdjhdjndndndjdjdjdjjcncndjdjnd dhdjhdjdjdjhddhhd ghhhhhhh ghbbbbb fghhhhhhbh cvhhhhhhbhbb ghhbb. Hjnxnxndbd vsbdbddbbxbdbbd dbdhdhdjjxndnbdhdh

like

Post for likes

like

Hate conference calls that drag on for hours.

Post for likes

like

Received an offer from SpaceX to do BA work. Similar responsibilities, lower salary, higher COL, leaving gf and friends currently. But it's SpaceX...I guess? Any advantages to this offer?

like

How much would I have to spend for Amex business gold to be worth it?

like

Waiting for a flight at O’Hare and want to use Priority Pass to grab a bite. Looks like I can only use it in Air France Lounge - can I get there if I have a domestic flight? Thanks!

like

Oh Aziz, you got that number on the monologue wrong babe.

like

How many people can say that they have lost almost all motivation in their current role? interesting because you come in so ambitious and next thing you know you hate everything. How do you fix it.

like

What's the lowdown on Deloitte digital? How's the culture, work, people? Any info you can provide would be helpful!

like

Lower position at a better company or higher position at a worse company? What would you take?

like

Need help - used my Apple Watch ⌚️ here in Cancun in the pool and then in the ocean, it was working first 2 days and stopped right after we did snorkeling, thoughts on how to bring it back ?

like

Assuming a full plane, do you take a standard economy window seat in the back or middle seat in an exit row for a three-hour flight.

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
Download Fishbowl to see what others are saying
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the Fishbowl app

Get realtime notifications and see
what's happening in your industry
from the palm of your hand.

For account settings, visit Fishbowl on Desktop Browser or

General

Legal