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What’s the wlb like at VCA?
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$900 per month after all expenses is a dream! Congratulations!
Subject Expert
So you’re talking about buying for $100k “cash” ?
Is the $900 per month after property taxes? Or are you also accounting for insurance, repairs, vacancy, and a CapEx allowance as well?
If the $900 per month is truly after all expenses, that’s pretty good. But my guess is that you’re forgetting about the other expenses that go into owning a rental property, especially over a long period of time.
Subject Expert
Those are decent returns. Will they outpace something like index funds over the long haul? Hard to say, especially without knowing anything about the house itself. Replacing a major system or two in that holding period might be the difference between a positive or negative return compared to an index fund.
Personally, I wouldn’t buy with cash, especially if that $100k represents more than 10% of your net worth. I’d rather buy with 25% to 50% down, use the interest as a tax deduction, and leave the other $50k to $75k for either another property or diversification into index funds as a counter balance.
Owning 1 to 5 investment properties won’t be a major game changer for most people, especially “cheap” SFH’s like this one. Game changing wealth tends to come from scale or strategic value adds over time, combined with effective leverage to create tax efficient growth.
That’s a 10% CapRate… I’m curious where this house is and what the projections for appreciation are… for any PM company, that’s an automatic pick-up…
But it seems like it could be in a low income area… so I’d pay a realtor to list and vet the tenants, with a preference for a 24-36 month lease…