Why Rent when you can Rehab?

[Greg P.]

Hello, I'm sure many people here are a big fan of renting properties to obtain wealth and so was I. But, thinking through this more clearly, I realized it would take so much longer to obtain money by renting out houses. Put it this way, lets say you have one rental and bought it for 50k. Now lets say you put in 15k to rehab and plan on renting it for 1,200 a month gross. It would literally take over a decade just to get your money back on the rehab costs only. Now think about a rehab. Lets say you bought it for 50k, put in 30k and resold it for $130. Net profit is 30k in 3-4 months. Anyone is a big imbalance here? I have no idea why anyone would want to rent to see a return on their money years down the road when you could see a return within months. Many will say because Rehabs require a lot of work, but it really doesn't because once systems are in place you can get a project done with under 10 hours a week. That's pretty good in my book. Any opinions?