[Oimie]

About 9 years ago my mother bought a brand new condo which we are currently living in for $290,000. She dropped $100,000 down herself and the other $190,000 was from a mortgage loan. My neighbor living in the apartment on the same floor right next to us is currently paying $1,500 in rent every month.

This got me thinking. In the near future if I drop down $100,000 to buy real estate property and I rent it out for $1,500, that would be an $18,000 of rental income per year. I am not sure what the numbers are, but if I take off let’s say an average of $6,000 per year for utility expenses and property taxes, that would leave me with an annual rental income of $12,000. That’s a whooping 12% return on investment. And I didn’t even add in the possible increases in my real estate property value due to inflation. Is it really that easy or am I missing something?

FAR 85 June 2015
AUD 80 Nov 2015
REG 83 Nov 2015
BEC 79 Feb 2016