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Updated 11 months ago,

User Stats

5
Posts
3
Votes
David Schiman
  • Wholesaler
  • Philadelphia, PA
3
Votes |
5
Posts

Multi-fam real estate vs Stocks for 20 years?

David Schiman
  • Wholesaler
  • Philadelphia, PA
Posted

If you had the opportunity to buy a building for $850,000 at 50% down versus putting the same amount of money into the stock market and just letting it ride (assume VTSAX as the vehicle) which would you choose? And why?
More details:
I've got the opportunity to buy a multifamily building for $850,000.
Rents will be $9,300/mo first year, $10,500 second year (two units need to be finished)
$100,000 buildout construction loan built into mortgage
Commercial mortgage at 9% first year and 7.5% interest permanent loan, amortized for 20 years with a 5 year balloon. It's in Philadelphia and I am assuming a 5% appreciation rate and 1.5% yearly rent increase.

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