All Forum Posts by: Patrick G.

hmmm, it seems not that simple. If I sell this house today, I can get $460K but I still have mortagage to be pay off which is about $350K. So $460K-$350K = $110K, it is almost the same as the money I put into this propety. ($42K+$75.6K)=$117K. It seems I am lossing money.

:( 

Is that right? 

Got it. Thank you so much Greg and Chris. agree this is not cash on cash return. I just want to compare the real estate and stock market investment. If I put my money in the S&P 500 index fund, the annual return is about 10%. But if I put the money into buying a house, with the leverage of a mortgage loan, I can still earn about 11% annually on my investment on the appreciation, even though there is no cash received for the rent. I want to see what if I compare the property with the Stock market.  It seems real estate is a good investment. Am I right? Thank you!!!

Hi There, I am calculating the cash on cash return of my house. Not sure whether the calculation is correct. Can someone give me some advice in the below scenario?

I bought a house 3 years ago with $420K and after 3 years the value on Redfin is about $460K so the appreciation is about $40K. But my down payment 3 years ago is only 10% of the total price $42K. I did not rent it in the 3 years. So can I calculate my cash on cash return like below $40K(appreciation)/($42k(Down payment)+(2.1K(Monthly payment for Mortgage+HOA)*36)) = 40/(42+75.6)= 34% so the annual cash on cash return is about 1.34 to find the cubit root. It is about an 11% yearly return on my initial investment. It does not include the rent income, just the appreciation, it is about 11%.

If I rent it out and the rent monthly payment let's say covers the mortgage and HOA, the cash on cash return will be $40K(appreciation)/($ 42K (Down payment) = 95% and it will be 1.95 to find the cubit root and it is about 25% yearly return on my initial investment.

Is my calculation correct? Any comments or ideas?

Thank you so much!

I got it. They are mid term and short term rental. One of my friends is also thinking about that but what I am concerning is how about the vacancy rate for the STR and MTR?

Thank you so much for your reply! Yeah, I did a calculation it is really hard to get a positive cash flow in beaverton where we live. What do you mean MTR and STR? Sorry I am pretty new in the real estate. If I am looking for an appreciation and cash-flow market in portland area which areas you think we should look at for more research.

Hi Steven and MD,

I did some research in the OR market. It seems it is so hard to get the positive cashflow in Oregon. Do you think a just break even cash flow and slight negative cash flow is worth to hold the house? The cash on cash return is just about 1-2%. Thank you!

I would like to learn how to be a wise invester to the real estate market in Beaverton Oregon area. I lived here for 4 years and now I am looking for learn more about the housing market and renting market. Thank you!

It seems they are remobing all the all the greenhouses and it seems that a big construction project. Any one knows are they going to build single family or apartment?