Let’s do some simple math…If you buy a $300k house, charge $1,900 in rent, and have a 35% expense ratio, you’re at a 4.94% cap.

So, do the math, spread out the risk, and you’ll be solid.PS: I own 30 properties and manage 300.

Did you use a calculator or spreadsheet, or did you simply work out the math like rental income minus PITI, 8% for CapEx, 8% for vacancy, and 5% for repairs?

For me it was math: I started looking at a portfolio risk rather than individual risks and your 30 year loans anchor my portfolio. 

And it was simple math, the more people I spoke with, the more interactions I had, the more "hey, you should talk to so-and-so" I would get. 

I wouldn't listen to those who say points makes sense if you like the rate because the answer is in the math.

Only a dozen or so made it to the workshop which was without doing the math around 15% of those who had paid for it.  

Thats ALL RE is about, just math.

Can anyone quickly share a math model of a the depreciation recapture scenario below?

-is it a good time for a person with no savings and no experience to take out a HELOC or personal loan and buy a random property in a state they've never been to using 100% leverage because made up spreadsheet math assumes no vacancy or capex or repairs ever and rent growth of 9.2% a year until 2074?