Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
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 almost 4 years ago on . Most recent reply

User Stats

150
Posts
159
Votes
Wade G.
  • Houston, TX
159
Votes |
150
Posts

Help with basic calculation

Wade G.
  • Houston, TX
Posted

I have run numbers trying to decide if holding SF properties is really worth the hassle and time compared to just investing in hands off investments like mutual funds or syndications.  For instance I have one property I am considering selling.  I bought the property in 2012 for 71k.  I spent 23k out of pocket.  I can now sell the property for 220k.  I would walk away with about 110k after paying off the mortgage, realtor fees, taxes, depreciation recapture, and other small expenses to sell for retail value.  For me the only return I care about is how much I walk away with on the initial investment of 23k.  I don't factor in CF because that just pays for ongoing repairs, maintenance and vacancies.  So roughly the return is about 19% when considered over 9 years.  I understand there are other calculations that can be used to determine the returns but I am trying to use the same scenario as if I just placed the 23k in a mutual fund.  Is this the proper way to think of returns or am I missing something?

Loading replies...