Average ROI on rental properties?

[Vincent Dicristo]

What would you estimate your median return on invested capital percentage annually to be between all of your rental properties?

[Will Barnard]

Originally posted by @Richard C.:

Originally posted by @Gualter Amarelo:

@Richard C. Since you asked for it, lol I'll point out that you can make the same principal payments in a 30 as you do in a 15. The one difference is flexibility. In a 30 you have the option not to make the extra payment and in a 15 you are "required" to do so. Equity is difficult to buy more property with, whereas CASH IS KING. 

That said... if your happy with how far you've gone with your empire, then by all means pay those babies off and enjoy the additional cashflow upon completion of the loans.

Cheers to wealth creation through RE!

 You see, that is just what I am talking about. There are in fact other differences. Like a full point of interest. And the fact that my credit union waived all fees on the 15. And the fact that I don't need to take a lot of cash out, I have a well-paying day jib and one a year is about all I have the time to add.

I would love to hear about your situation that has you believe that the 15 year mortgage is the better choice. I fully agree that the poster above responding to your post missed the simple fact that a 15 year comes with a lower interest rate, although 1 point difference is the maximum in this current market, typically this just a half point.

Here is my argument to just about any personal situation (and I get the fact that not everybody has the time, the means, or the ability to do this): in today's almost historic low interest rates, even the most rookie investor can find a RE investment that yields a return higher than even the highest 5% conventional intent rate, and therefore! having the 30 year and investing the extra money into other investments that yield higher returns above and beyond your interest cost is the simple concept of arbitrage. I would challenge anybody taking a 15 year amm loan to my 30 year mortgage and seeing who has more net worth at the end of the 15 year term. While they are paying down principle and owning that home in 15 years, I will have used that extra cash and invested in other properties, notes, loans, etc and come out ahead every time.

I hope you take my intended context of my post as another way to look at your situation rather than just an attempt to argue, that is not my style.