Fred had a positive cash flow of $236 after paying mortgage, property taxes, and homeowners insurance. His cash on cash return is 10.82%!
Fred is not getting any CD rate close to the returns Fred is getting from investing in this property. This means that it will take Fred less than 10 years to recover his initials total cost on the deal.
Now, meet Patrick Sloppy…
Patrick sloppy on the other hand believes that the value of real estate will always appreciate in value. Patrick believes “you can’t go wrong when you invest in real estate.” He is right to a certain extent. That is if he buys rental real estate right.
Patrick likes to brag about his hunch and gut feeling for