Return on capital from rental almost never exceeds return from an index fund.

Jun 29, 2020
4:30:44pm

valleus Truly Addicted User

And it certainly never exceeds that return when you factor in hours of labor you spend. Yes, there are anecdotes of get rich rental bros, but on average you will not be a lucky one.

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valleus

Bio page: valleus
Joined: Feb 1, 2017
Last login: Apr 29, 2024
Total posts: 9,410 (2,183 FO)

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Messages

Author

Time

Give me an example of a single-family home purchase for rental purposes that is both realistic and worth considering

kccougar Truly Addicted User

6/29/20 4:04pm

RE: Give me an example of a single-family home purchase for rental purposes that

SandYFan

6/29/20 4:05pm

How much of that purchase would you finance and how much rent would you charge?

kccougar

6/29/20 4:07pm

Put 100k down so that the mortgage payment is low and you can pay off the house

Archaea

6/29/20 4:11pm

Heres a rental property I've been looking into purchasing

ZacSeljaas'Stache

6/29/20 4:05pm

I'll pay 1000 per month to stay there.

Archaea

6/29/20 4:11pm

I'll see your $1000 and add six Arby's coupons

Born2Fish

6/29/20 4:12pm

I'll add my Monopolies stickers from the grocery store

Archaea

6/29/20 4:13pm

Two cases of Shasta Root Beer and all the Taco Bell sauce packets in my fridge

Born2Fish

6/29/20 4:21pm

I up your cases, with two cases of Diet Mountain Dew and a case of Diet Barq's,

Archaea

6/29/20 5:29pm

The shutdown has made it tough on all of us.

Cougar TD

6/29/20 4:20pm

Good chance best ones never see public listings.

Linescratcher

6/29/20 4:19pm

Bulk REO is how most are done

compcoug

6/29/20 4:28pm

RE: Give me an example of a single-family home purchase for rental purposes that

JAGA97

6/29/20 4:21pm

Return on capital from rental almost never exceeds return from an index fund.

valleus

6/29/20 4:30pm

Please count the 4 benefits of owning investment real estate to be fair..

grandpacoug

6/29/20 5:10pm

1-4 are already factored in. Overwhelmingly, the individual will receive a

valleus

6/29/20 5:54pm

I've seen this argument before. Does not hold up. R.E ALWAYS provides a roof for

grandpacoug

6/30/20 6:52am

The majority of academic research disagrees with you.

valleus

6/30/20 7:41am

I would love to see that research. Does the research factor in

CougaRR4L

6/30/20 10:59am

After your friend stops acquisition phase, if he wants more cash, just start

grandpacoug

6/30/20 11:33am

Great tip

CougaRR4L

6/30/20 11:55am

Wow, that is not what I have seen from working in the real estate industry.

kimdaddy35

6/29/20 5:43pm

Leveraged returns from real estate blow stock returns out of the water in my

VenturaCoug

6/29/20 10:26pm

Apples to oranges

Acorn

6/30/20 5:23am

I agree. RE is generally not a truly passive investment. I just disagree with

VenturaCoug

6/30/20 5:47am

Not even close. Been investing since 2002 and returns blow away the market.

johnnybyu

6/29/20 10:44pm

There are still great areas 4 R.E. Pick a state like Texas, FL or Midwest. The

grandpacoug

6/30/20 7:00am

Plural of anecdote is not data. Your experience is not what the average person

valleus

6/30/20 7:42am

To be honest, you probably don't want to buy a rental in Utah right now

WhoisJohnGalt

6/29/20 4:31pm

That's kind of my point with this thread. I am having a hard time identifying scenarios in Utah's market right now

kccougar

6/29/20 4:48pm

The market is too high right now to make rentals profitable and a huge risk of a

Ycrazy

6/29/20 4:53pm

Look at other markets. The midwest is a great place to buy right now.

WhoisJohnGalt

6/29/20 5:43pm

If you're also holding it for increase in value, it might make sense.

Real Men Wear Blue

6/29/20 4:34pm

Single family is a speculative investment right now. Generally don’t cash flow

VenturaCoug

6/29/20 4:43pm

Utah has little cash flow. Other states do have cash flow with low interest rate

grandpacoug

6/29/20 5:11pm

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