Wife has been doing our taxes for the 2019 rental properties.

Last year we acquired our first one in May, 2nd in September.

Numbers weren’t so great.

Snagged our 3rd property in March this year.

Started renting it in May.

This year will be VERY profitable.

(MEGA THREAD)

After all 3 properties principal, interest, taxes and insurance is paid, the business will profit $18,900.

Now remember that isn’t accounting for vacancy, maintenance and repair budgeting.

We invested $89,000 so far.

Let’s say I set aside 10% each month for vacancy and 10% for misc repairs that come up, that would leave about $9,800 net operating income.

That’s a cash on cash return of 11%!

So now we are beating the average stock market returns, but not by much.

But wait there’s more!!!

Don’t forget depreciation! Every year over the next 27.5 years, we can depreciate a certain percentage each year on taxes. This helps lower our taxable income EVERY YEAR.

But wait there’s still more!!

One of my favorites too.......

Many early investors think they want to pay the rentals off quickly. I disagree.

Why would you spend your own cash to pay it off, when you have a tenant paying the interest and principal amounts plus giving you CASH FLOW ever my single month?!

Let’s say I hold all 3 until they are paid off in 30 years. In theory, I will have 3 homes that were PAID FOR BY TENANTS and hold an appreciated value.

That’s 3 retirement funds that I can easily liquidate if I choose to at that time!

Or at retirement I’ll have 3 that pay me $3,800 every single month!

My plan is to have atleast 10 paid for by retirement.

That would give me around $13,000 EVERY SINGLE MONTH!

If you’d like to learn how to get started in rental properties, take a look at the book I put together.

After you read it, DM me and let’s talk! https://gum.co/purchaserental