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Updated over 10 years ago on . Most recent reply

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Leigh Ann Smith
  • Manvel, TX
127
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I don't understand $ per door instead of % return

Leigh Ann Smith
  • Manvel, TX
Posted

I often hear investors refer to netting X dollars per door.  That makes no sense to me.  $200 per door per month might be great if you have 10K invested, but terrible if you have $100K invested.  Why does $ per door have any relevance at all?

Most Popular Reply

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Matt Devincenzo
  • Investor
  • Clairemont, CA
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Matt Devincenzo
  • Investor
  • Clairemont, CA
Replied

It matters because just as in your example $200/door for a 100K investment isn't good, neither is a 12% return on $5,000 which is only $50/mo. That IMO is not worth the necessary work required of managing a rental...or PM whichever the case. 

They are two separate metrics that paint a different perspective on the same picture and then you can make a better decision.

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