Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Erik Koenig

Erik Koenig has started 1 posts and replied 2 times.

Thanks @Ko. 

I'm realizing the other key factor is that, in my example, $20k over 30yrs in the stock market would theoretically return (at 8%) about $100k. So, that is the missing piece that brings the value of going the real estate results back to cash flow, appreciation, etc. 

Hi new BiggerPockets friends! 

I am in a good cash position and looking to enter into real estate. 

I'm trying to wrap my head around one key thing... For simple math, if I purchased a $100k property with 20% down and was able to get rent to cover the mortgage, interest, taxes, maintenance and property management (essentially zero cash flow)... held for 30yrs with no appreciation... then wouldn't I essentially hold $100k equity in the property in 30yrs on an initial investment of $20k? I know there's a million other things to factor in (vacancy, etc.), but fundamentally, isn't this a case where renters essentially pay my mortgage and I end up owning the asset? 

Said another way, if a rental property doesn't appreciate or cash flow, but does enough to cover the expenses tied to the property, isn't the fundamental benefit of a long term strategy like this simply owning an asset renters paid for?

Take it easy on me :-). Thanks!