Could we really be worth a million dollars?

[Joshua D.]

Could we really be worth close to a million dollars? So me and my wife started a real estate company up 3 years and 5 months ago. We have 11 sfh’s and a duplex. Finishing up remodels on 3 sfh’s now. So on to are situation i feel its to good to be true. So are total debt is $275,000 are gross rent will be $13,407 when have everything rented out. So also when we refinance are properties the appraisals are coming back double to triple what we have into them. I had a conversation with one of the biggest appraisers in the area and did are last appraisal and does fair market value on the properties. So in this case so far are gross sales of all properties would be $875,000 based on appraisal numbers. I pray and hope this is the case i quit my job and get nervous everyday with all this. I have nothing else to call back on and get nervous i have a construction team now dont anything much now because continue to buy and rehab and keep it going. Thoughts please?

[Joe Splitrock]

@Joshua D. let's do the math:

Retail value is $875,000

Conservative sales expense would be 7% which is $61,250 which brings it down to $813,750

Pay back your debt of $275,000 and that puts your cash out at $538,750

Pay taxes depreciation recapture and capital gains and your net is probably well under $500,000.

So no, you are not a millionaire, but great start. Keep going! Also keep in mind that $1,000,000 is not very much money in 2018 dollars. If that is your target, you should consider a higher one.