All Forum Posts by: David Schiman

Thanks, @Scott Mac, I guess what I was comparing to was RE VS an index fund like VTSAX that's gained 12% a year in the past.  

@Jonathan Bock The 50% down is not exactly right... It looks like this:

BUT, the actual purchase price I will offer is $675,000 not $850,000.  $850,000 is asking.  I'd still take out a $100,000 construction loan and do a build out for a commercial tenant TBD.

I've flipped 15 houses, built (as a carpenter 15 different units) and am very handy in general.  I have remotely managed a property in DC for 10+ years without major issues.  AND, this deal would require me to deal with tenants of lesser means than DC as well as commercial tenants and I have no experience with those two aspects of landlording.  My rental in DC had squarely upper middle class tenants and this place will be lower economic class tenants.

Roxborough

If you had the opportunity to buy a building for $850,000 at 50% down versus putting the same amount of money into the stock market and just letting it ride (assume VTSAX as the vehicle) which would you choose? And why?
More details:
I've got the opportunity to buy a multifamily building for $850,000.
Rents will be $9,300/mo first year, $10,500 second year (two units need to be finished)
$100,000 buildout construction loan built into mortgage
Commercial mortgage at 9% first year and 7.5% interest permanent loan, amortized for 20 years with a 5 year balloon. It's in Philadelphia and I am assuming a 5% appreciation rate and 1.5% yearly rent increase.

How long do you have to stay in a HH home before doing it again?