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Updated over 4 years ago on . Most recent reply
35% return if loan paidoff
I have $100K outstanding balance on the mortgage for a property that has $2500 in monthly rents. Taxes + insurance + maintenance + property management fee is < $1100/month. Hypothetically, If I payoff the loan tomorrow, I save 35k in loan interest that I would otherwise pay over the course of the loan. Isn't that almost 35% immediate return on my 100K? Over that I will have $16.8K in cash flow each year. Is my line of thinking correct?
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Wayne Brooks
#1 Foreclosures Contributor
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Wayne Brooks#1 Foreclosures Contributor
#1 Foreclosures Contributor
- Real Estate Professional
- West Palm Beach, FL
Whatever the interest rate is on your loan....that is Exactly your annual rate of return/yield by paying it off.