All Forum Posts by: Reese Donohue

say you bought a house for 100k with a 25% down payment of 25k.

if your cash on cash return was 10% or 2,500

if the house appreciated the annual average of 3%, thats 3,000 in added equity

if your loan was paid down 1750 in the first year thats an extra 1750 in added equity

it all adds to 7250 on your total investment of 25k, that comes out to 29% total return the first year total. You dont hear people talk about returns that high often. But you do hear people talk about a 10% cash on cash return. 3% appreciation is average, and the loan paydown is just paying one year worth of your 30 year mortgage. Can these numbers be realistic?

sounds crazy but here are my numbers

Say you find a single family for 200k in a c class neighborhood with a 9 cap rate

 purchase price- 200k

cap rate- 9

80/20 financing, 40k down

streams of return

appreciation (3%)- 6k

rental income - 9k (18k-9k loan payments)

loan paydown- 3k

total return- 18k

roi- 45%

Why wouldnt everyone be all over this?

Im considering self managing my first rental but id like to hear your experience managing your own. How often are you actually at the property. My biggest concern is physically having to go to the property on a frequent basis. I live 40 minutes from the market im looking at.

I know leasing and large repairs will require my presence. From what i understand landlords can have most small repairs arranged between the tenants and the contractor. Im curious how often you physically go to the property.