More Real Life Numbers For Real Estate Investors

People need to know the truth about real estate investing.  The truth is it takes money to make money.  There is nothing for free.  And that flipping isn’t investing, it’s a job.  I’m not saying you shouldn’t scrap to achieve.  But that is a whole other topic for a whole other time.

Back in September I did a post titled Investment Property Case Study.  So here is the follow up.

That very same portfolio is wrapping up the year.  So I thought I would show you the results of THIS YEAR only.

Gross Operating Income                 $525,869
Operating Expenses                       $182,330
Net Operating Income                     $343,539

That looks pretty good!  But the Operating Expenses are not complete.  This real estate investor group pays their own property taxes so I don’t have the exact number to enter.  But I’m going to guess somewhere around $58,000.  That would leave a real NOI of $285,539.

Based on their “all in” acquisition costs (only, not the “to-date” I used in the other post) that would leave them with an unadjusted Cap Rate of 10.2.  That would also be their Cash on Cash return.

So, not too shabby.  And let’s not forget that there has been a 36.3% increase in value of these properties since their acquisition.

Yes. Real estate investing can make you some serious dough.  Now, you don’t have to be an investment fund to make this happen. If you bought one, and then another and were getting these returns, what would your retirement look like?

A “Retirement worth having” doesn’t happen by accident.  Start today.  Give me a call.  913-568-1579