what on Earth can beat RE and generate a 100%+ return in 2 years?

[Huy N.]

Hi BP community!

Just want to share with everyone another simple and boring deal that generate over 100% return over two years. How many time have you heard people said something like real estate is complicated and risky? This is to prove that you can keep real estate as simple as it is and it still generate a crazy return.

Long story short, this is one of the rental that i bought 2 years ago for 80k from a whole wholesaler. put 10k of rehab into it. I then refinance it out at 25% down payment - 20k with the mortgage at ~$540 a month. The house quickly leased for $1250 and it's needless to do the ROI. with $1250 rent and $540 P and I. the return is like a rocket shooting through the roof

The tenant moved out after two years and I decided to put it up for sale at 130k. the house quickly got a contract in less than 30 days of listing and then sold 2 months after that to a happy home owner. With the sale price of 130 minus selling fee and mortgage payoff. i was left with a 47k check.

I put 20k into the house 2 years ago. now i am getting the check for 47k. Not to mention all the rent income received for the last 2 years and the tax benefit.

what vehicle on earth can beat real estate investment and generate a 100%+ return in two years? If you found one, please let me know

Also, do you think that i should keep the house forever, or selling it after 2 years is a good idea? I would love to hear your comment below

Thank you!

Here is some pics of the house

and my fancy check after 2 years of hard work. I might cash out too early, you think so?

[Curt Smith]

Good one.  The unmentioned key which is never talked about in buy and hold posts is:

- best appreciation happens in rentals bought in top school districts via great schools rating.

- buy cute curb appeal in nice nieghborhood.  

- If you buy in small towns like me, also deep study jobs and new jobs sources.  Only buy in the path of job increases.

Sounds like this deal did this well BECAUSE of one or more of the above was in play.  Its a necessity to know why a deal did so well so one can hope to replicate it or share with others to replicate.

Buying a cheap house in the hood will never do this well.  Rough areas don't appreciate nor attact occupant offers bidding the price up.  Only the above points will cause this to happen.

Good luck folks.