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Updated over 5 years ago,

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Gauge Brown
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How long should it take for your lease rate to pay off loan?

Gauge Brown
Posted

I have a very general and probably overly simplified question. How long should it take for your lease rate to pay off your purchase price of the property?

For example, if I buy a property for $1,000,000, what would be considered a good annual net lease income? Should I strive for $50,000 a year to recoup my investment in 20 years? $100,000 to recoup in 10 years? $200,000 to recoup in 5 years?

I realize there are a lot of issues, such as inflation, that my example doesn't consider. I am just looking for a broad estimate of the time period it should normally take to recoup your initial investment. Thoughts?

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