Mortgage rate 2.5%. I’m updating my model to creat cash flow from a property. Trying to capture all elements there. Mt friend has switched from real estate to ETF for a long run but looks like real estate still seems to give us a higher return
Both are good or people would jump into the better option. You should do both to diversify. The next 20 years inflation could kill stocks or real estate. Also rental income generally tracks inflation, but single family homes values could crash with inflation's rising interest rates.
Your stock return is very conservative but your mortgage rate is aggressive. You should have 2 scenarios: aggressive and conservative - for both. Looks like you’ve put your thumb on the scale.
Spending 1-4% of your property’s value annually on maintenance, out of pocket.
I have another one in Jackson Mississippi - 205k , rented for 1950 per month and pretty new building 2014 . 3 k in taxes .
Maybe consider a portfolio of high performing, dividend paying REITs as alternative to ETF. REITs can be amazing
What is your assumed stock return?
It’s 5% annual average for 15years when cashed out
Coach
What mortgage rate are you assuming?
Maintenance and repairs is a good one
Mortgage rate 2.5%. I’m updating my model to creat cash flow from a property. Trying to capture all elements there. Mt friend has switched from real estate to ETF for a long run but looks like real estate still seems to give us a higher return
Both are good or people would jump into the better option. You should do both to diversify. The next 20 years inflation could kill stocks or real estate. Also rental income generally tracks inflation, but single family homes values could crash with inflation's rising interest rates.
That’s a good point. Thank you
Your stock return is very conservative but your mortgage rate is aggressive. You should have 2 scenarios: aggressive and conservative - for both. Looks like you’ve put your thumb on the scale.
Got it. Thanks