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Updated over 9 years ago,
How Long to Recoup Investment
Hi BP! I've been analyzing some deals online looking at several duplexes and triplexes to purchase (this would be my first investment deal).
Currently I'm looking at a $75,000 duplex with 20% down ($15,000). Based on the cash outlay, I'm looking at a total of roughly $17,500 for the down payment, closing costs, and a buffer for repairs. When I did the math with the cash flow, it looks like it'll take me about 4 years to recoup the $17,500 that I would be investing.
Question:
Is 4 years a decent amount of time to recoup an investment? How long is too long? Any suggestions or rule of thumbs on how long it should take to make your money back? I was thinking if I can make my investment back within 1 to 2 years that would be great. Please correct me if I'm unrealistic. Thank you all for your help!