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Updated about 10 years ago on . Most recent reply
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Break even in 7 years?
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
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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.