Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 10 years ago on . Most recent reply

User Stats

36
Posts
11
Votes
Peter Skobic
  • Lender
  • Watertown, NY
11
Votes |
36
Posts

Break even in 7 years?

Peter Skobic
  • Lender
  • Watertown, NY
Posted

If you have a 14% ROI on a rental and the investment is projected to break even in 7 years, what are your thoughts on that break even point? 14% is not bad and it's after deducting a huge cushion for expenses to reduce any chance of a surprise, but it will take 7 years to recoup the downpayment. How much weight do you normally put on the break even timeframe when evaluating an investment?

  • Peter Skobic

Most Popular Reply

User Stats

5,659
Posts
1,832
Votes
Elizabeth Colegrove
  • Hanford, CA
1,832
Votes |
5,659
Posts
Elizabeth Colegrove
  • Hanford, CA
Replied

Peter, I don't look at it that way. I evaluate my cash on cash rate of return. 

If you look at it in the way if you invested in the stock market how long would it take for your dividend to "break even" regarding you initial investment. 

Loading replies...